sidual who is working on hung her Fundamental Concepts in Financial Management 3-17 FREE CASH FLOW Financial information for Powell Panther Corporation is shown here. Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2015 2014 51.0000 $1.200.0 1.020,0 $ 1800 300 51500 250 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation & amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (40%) Net income $ 1500 21.7 $ 1283 513 $ 770 $1250 202 $ 1043 413 5623 $ 605 Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2015 2014 5 10.0 150.0 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $ 120 180.0 1800 53720 300.0 $672.0 2000 5360.0 25000 $610,0 $ 900 $1080 72.0 67.0 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock (50 million shares) Retained earnings Common equity Total liabilities and equity $2470 1500 $3970 500 225.0 $2750 56220 S15 $2013 1500 5351 SO 5616 a. What was net operating working capital for 2014 and 2015? b. What was the 2015 free cash flow? How would you explain the large increase in 2015 dividends? C