solution

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 $1,680.0
$1,400.0 Operating costs excluding depreciation and amortization
1,344.0 1,190.0 EBITDA $336.0 $210.0 Depreciation and amortization
37.0 29.0 Earnings before interest and taxes (EBIT) $299.0 $181.0
Interest 37.0 31.0 Earnings before taxes (EBT) $262.0 $150.0 Taxes
(40%) 104.8 60.0 Net income $157.2 $90.0 Common dividends $141.0
$72.0 Powell Panther Corporation: Balance Sheets as of December 31
(Millions of Dollars) 2016 2015 Assets Cash and equivalents $23.0
$20.0 Accounts receivable 200.0 182.0 Inventories 252.0 210.0 Total
current assets $475.0 $412.0 Net plant and equipment 368.0 294.0
Total assets $843.0 $706.0 Liabilities and Equity Accounts payable
$101.0 $84.0 Accruals 140.0 112.0 Notes payable 34.0 28.0 Total
current liabilities $275.0 $224.0 Long-term bonds 336.0 280.0 Total
liabilities $611.0 $504.0 Common stock 188.8 175.0 Retained
earnings 43.2 27.0 Common equity $232.0 $202.0 Total liabilities
and equity $843.0 $706.0 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: $ 2016: $ What
was the 2016 free cash flow? $ How would you explain the large
increase in 2016 dividends? The large increase in net income from
2015 to 2016 explains the large increase in 2016 dividends. The
large increase in free cash flow from 2015 to 2016 explains the
large increase in 2016 dividends. The large increase in EBIT from
2015 to 2016 explains the large increase in 2016 dividends. The
large increase in sales from 2015 to 2016 explains the large
increase in 2016 dividends. The large increase in retained earnings
from 2015 to 2016 explains the large increase in 2016 dividends.
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