Financial information for Powell Panther Corporation is shown here. a. What was net operating working capital for
Question:
Financial information for Powell Panther Corporation is shown here.
a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash.
b. What was the 2021 free cash flow?
c. How would you explain the large increase in 2021 dividends?
Transcribed Image Text:
Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 $ 1,200.0 1,020.0 $ 180.0 30.0 150.0 21.7 128.3 32.1 96.2 79.7 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Common dividends $ $ $ $ en 2020 $1,000.0 850.0 $ 150.0 25.0 $ 125.0 20.2 $ 104.8 26.2 78.6 61.3 $ $
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Lets break down the questions one by one a Net Operating Working Capital NOWC for 2020 and 2021 Net Operating Working Capital NOWC is calculated as th...View the full answer
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Related Book For
Fundamentals Of Financial Management
ISBN: 9780357517574
16th Edition
Authors: Eugene F. Brigham, Joel F. Houston
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