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Sales Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020

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Sales Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 2020 $2,160.0 $1,800.0 Operating costs excluding depreciation and amortization 1,674.0 1.530.0 EBITDA $ 486.0 $ 270.0 Depreciation and amortization 49.0 38.0 Earnings before interest and taxes (EBIT) $ 437.0 $ 232.0 Interest 47.5 39.6 Earnings before taxes (EBT) 389.5 $ 192.4 Taxes (25%) 155.8 77.0 Net income 233.7 $ 115.4 Common dividends $ 210.3 92.3 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2021 2020 $ 21.0 $ 18.0 257.0 414.0 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $ 692.0 491.0 $1,183.0 234.0 360.0 $612.0 378.0 $ 990.0 $ 225.0 $180.0 90.0 43.2 $ 358.2 72.0 36.0 $288.0 Liabilities and Equity Accounts payable $ 225.0 $ 180.0 Accruals 90.0 72.0 Notes payable 43.2 36.0 Total current liabilities $ 358.2 $288.0 Long-term bonds 432.0 360.0 Total liabilities $ 790.2 $ 648.0 Common stock 334.7 307.3 Retained earnings 58.1 34.7 Common equity $ 392.8 $ 342.0 Total liabilities and equity $1,183.0 $ 990.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign. a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 2021: $ b. What was the 2021 free cash flow? $ C. How would you explain the large increase in 2021 dividends? 1. The large increase in net income from 2020 to 2021 explains the large increase in 2021 dividends. II. The large increase in EBIT from 2020 to 2021 explains the large increase in 2021 dividends. III. The large increase in free cash flow from 2020 to 2021 explains the large increase in 2021 dividends. IV. The large increase in sales from 2020 to 2021 explains the large increase in 2021 dividends. V. The large increase in retained earnings from 2020 to 2021 explains the large increase in 2021 dividends

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