Financial information for Powell Panther Corporation is shown here. a. What was net operating working capital for
Question:
b. What was the 2018 free cash flow?
c. How would you explain the large increase in 2018 dividends?
Transcribed Image Text:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 $ 1,200.0 Sales $1,000.0 Operating costs excluding depreciation and amortization 1,020.0 850.0 $ 180.0 $ 150.0 EBITDA Depreciation and amortization 30.0 25.0 $ 150.0 $ 125.0 Earnings before interest and taxes (EBIT) Interest 21.7 20.2 $ 128.3 $ 104.8 Earnings before taxes (EBT) Taxes (40%) 51.3 41.9 $ 62.9 Net income 77.0 Common dividends 60.5 46.4 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 12.0 $ 10.0 Accounts receivable 180.0 150.0 Inventories 180.0 200.0 Total current assets $ 372.0 $ 360.0 Net plant and equipment 300.0 250.0 Total assets $ 672.0 $ 610.0 Liabilities and Equity Accounts payable $108.0 $ 90.0 Accruals 72.0 60.0 Notes payable 67.0 51.5 Total current liabilities $247.0 $ 201.5 Long-term bonds 150.0 150.0 Total liabilities $397.0 $ 351.5 Common stock (50 million shares) 50.0 50.0 Retained earnings 225.0 208.5 Common equity $ 258.5 $ 610.0 $275.0 Total liabilities and equity $672.0
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 56% (16 reviews)
a Net operating Working Capital 2017 Operating current assets Operating current liabilities Current ...View the full answer
Answered By
Muhammad Ahtsham Shabbir
I am a professional freelance writer with more than 7 years’ experience in academic writing. I have a Bachelor`s Degree in Commerce and Master's Degree in Computer Science. I can provide my services in various subjects.
I have professional excellent skills in Microsoft ® Office packages such as Microsoft ® Word, Microsoft ® Excel, and Microsoft ® PowerPoint. Moreover, I have excellent research skills and outstanding analytical and critical thinking skills; a combination that I apply in every paper I handle.
I am conversant with the various citation styles, among them; APA, MLA, Chicago, Havard, and AMA. I also strive to deliver the best to my clients and in a timely manner.My work is always 100% original. I honestly understand the concern of plagiarism and its consequences. As such, I ensure that I check the assignment for any plagiarism before submission.
4.80+
392+ Reviews
587+ Question Solved
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
Question Posted:
Students also viewed these Business questions
-
Financial information for Powell Panther Corporation is shown here. Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)...
-
Financial information for Powell Panther Corporation is shown here: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) a. What was the 2005 NOPAT? b. What...
-
How would you explain the large and expanding domestic trade in slaves between 1790 and 1860? What combination of factors produced this result?
-
Identify a true statement about the rational and emotional aspects of leadership. Multiple choice question. Leadership is not about the rational or emotional sides of human experience Leadership...
-
Scissors Hair Stylists has begun the preparation of its adjusted trial balance as follows: Year-end data: a. Supplies remaining on hand, $300 b. Amortization, $1,100 c. Accrued interest expense, $700...
-
Do you think the medical records were actually lost, or were they intentionally lost? Explain your answer.
-
A sphere of radius \(R\) is rotating in an infinite fluid at an angular velocity of \(\Omega\). Derive the following expression for the velocity field: \[v_{\phi}=r \Omega \sin \theta...
-
Refer to the Auditing in Practice feature, "Professional Skepticism." a. What is professional skepticism? b. Why is professional skepticism necessary to detecting fraud? c. What are the key behaviors...
-
1: Write a program that performs the following operations in order after declaring these variables: a=5 b=10 c=7 Set b equal to 2 plus a Set a equal to b times 4 Set b equal to a divided by 3.14 Set...
-
Discuss the benefits of using ChatGPT to support your learning and professional development. How can you use it to help you with your schoolwork while still benefiting from your assignments? Evaluate...
-
The Davidson Corporations balance sheet and income statement are provided here. a. Construct the statement of stockholders equity for December 31, 2018. No common stock was issued during 2018. b. How...
-
Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $82,000 in salary. She received...
-
Alysha Monet has prepared the following list of statements about depreciation. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for the proper matching...
-
QNOG CHAIR TABLE Max. Avaliable Resources a. b. Cx = Wood in (feet) d. f = Nome of the f (50 85], A f = [85 50], A = DE 10 25 350 above [85 50], A = PENE Man Hours (In hours) 15 30 500 25 [ 18 35] b...
-
Exercise 3.4. In this exercise, you are to design a software program that simulates a simple process of students going to school in the morning. You are given the following user story: John and Maria...
-
C Step 3 Using the techniques practiced in the preceding steps, create a table of the custom subnet masks. Include the appropriate values for both the binary and decimal representations; the number...
-
QUESTION 6 In what places can the definition of a C++ member function appear? in a class declaration (e.g., class A;) in the class definition (e.g. class A { };) doesn't matter outside and after the...
-
Airport Boarding System Part I: 1. Use the use case diagram and the sequence diagram to list down required WBS 2. Use MS project to generate your WBS 3. Arrange predecessor accordingly 4. Identify...
-
Define balance of payments.
-
Using (1) or (2), find L(f) if f(t) if equals: t cos 4t
-
Edmund Enterprises recently made a large investment to upgrade its technology. While these improvements wont have much effect on performance in the short run, they are expected to reduce future costs...
-
Edmund Enterprises recently made a large investment to upgrade its technology. While these improvements wont have much effect on performance in the short run, they are expected to reduce future costs...
-
Suppose you were a member of Company Xs board of directors and chairperson of the companys compensation committee. What factors should your committee consider when setting the CEOs compensation?...
-
Giving a test to a group of students, the grades and gender are summarized below A B C Total Male Female 10 3 15 28 8 20 19 47 Total 18 23 34 75 If one student is chosen at random, Find the...
-
K A universal set U consists of 16 elements. If sets A, B, and C are proper subsets of U and n(U) 16, n(An B) = n(An C) = n(BNC) = 6, n(AnBn C) = 2, and n(A UBU C) = 14, determine each of the...
-
Without solving, say whether the equation has two solutions, one solution, or no solution. The equation has because (x+4) = 19
Study smarter with the SolutionInn App