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Problem 3-17 FREE CASH FLOW Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions
Problem 3-17 FREE CASH FLOW
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
2016 | 2015 | |||||
Sales | $3,335.0 | $2,900.0 | ||||
Operating costs excluding depreciation and amortization | 2,835.0 | 2,465.0 | ||||
EBITDA | $500.0 | $435.0 | ||||
Depreciation and amortization | 97.0 | 81.0 | ||||
Earnings before interest and taxes (EBIT) | $403.0 | $354.0 | ||||
Interest | 73.0 | 64.0 | ||||
Earnings before taxes (EBT) | $330.0 | $290.0 | ||||
Taxes (40%) | 132.0 | 116.0 | ||||
Net income |
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Common dividends |
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Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2016 | 2015 | |||||
Assets | ||||||
Cash and equivalents | $46.0 | $38.0 | ||||
Accounts receivable | 566.0 | 435.0 | ||||
Inventories | 500.0 | 435.0 | ||||
Total current assets | $1,112.0 | $908.0 | ||||
Net plant and equipment | 974.0 | 812.0 | ||||
Total assets |
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Liabilities and Equity | ||||||
Accounts payable | $334.0 | $290.0 | ||||
Accruals | 226.0 | 174.0 | ||||
Notes payable | 67.0 | 58.0 | ||||
Total current liabilities | $627.0 | $522.0 | ||||
Long-term bonds | 667.0 | 580.0 | ||||
Total liabilities | $1,294.0 | $1,102.0 | ||||
Common stock | 719.0 | 565.0 | ||||
Retained earnings | 73.0 | 53.0 | ||||
Common equity | $792.0 | $618.0 | ||||
Total liabilities and equity |
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Write out your answers completely. For example, 25 million should be entered as 25,000,000.
What was net operating working capital for 2015 and 2016? 2015: $ 444000000 2016: $ 552000000
What was the 2016 free cash flow?
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