Financial information for Powell Panther Corporation is shown here.

a. What was net working capital for 2007 and 2008?b. What was the 2008 free cash flow?c. How would you explain the large increase in 2008dividends?

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Powell Panther Corporation: Income Statements For Year Ending December 31 (Millions of Dollars) 2007 2008 $1,000.0 Sales $1,200.0 Operating costs excluding depreciation and amortization 1,020.0 $ 180.0 850.0 $ 150.0 EBITDA Depreciation & amortization Earnings before interest and taxes 30.0 $ 150.0 25.0 $ 125.0 21.7 20.2 Interest S 128.3 $ 104.8 Earnings before taxes Taxes (40%) 51.3 41.9 $ 77.0 $ 62.9 Net income $ 60.5 $ 46.4 Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2008 2007 Assets S 10.0 $ 12.0 Cash and equivalents Accounts receivable 180.0 150.0 180.0 Inventories 200.0 $372.0 Total current assets $360.0 Net plant and equipment 300.0 250.0 Total assets $672.0 $610.0 Liabilities and Equity Accounts payable Notes payable $ 90.0 $108.0 67.0 51.5 72.0 $247.0 Accruals 60.0 Total current liabilities $201.5 Long-term bonds 150.0 150.0 Total debt $397.0 $351.5 Common stock (50 million shares) Retained earnings Common equity Total liabilities and equity 50.0 50.0 225.0 208.5 $258.5 $275.0 $672.0 $610.0