Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year...

 

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Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 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 $1,955.0 1,466.0 $ 489.0 45.0 444.0 43.0 401.0 160.4 240.6 $ $ $ $ 2020 Common dividends 216.5 $ 85.8 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 2021 $1,700.0 1,445.0 $ 255.0 39.0 $ 216.0 37.4 $ 178.6 71.4 $ 107.2 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Common equity Total liabilities and equity 22.0 293.0 388.0 $703.0 450.0 $1,153.0 $ $ 221.0 122.0 39.1 $382.1 391.0 $773.1 323.7 56.2 $379.9 $1,153.0 $17.0 255.0 323.0 $ 595.0 391.0 $986.0 $ 170.0 102.0 34.0 $ 306.0 340.0 $646.0 307.9 32.1 $340.0 $986.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign. a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 323000000 2021: $ 360000000 b. What was the 2021 free cash flow? $ Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2021 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 $1,955.0 1,466.0 $ 489.0 45.0 444.0 43.0 401.0 160.4 240.6 $ $ $ $ 2020 Common dividends 216.5 $ 85.8 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2020 2021 $1,700.0 1,445.0 $ 255.0 39.0 $ 216.0 37.4 $ 178.6 71.4 $ 107.2 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Common equity Total liabilities and equity 22.0 293.0 388.0 $703.0 450.0 $1,153.0 $ $ 221.0 122.0 39.1 $382.1 391.0 $773.1 323.7 56.2 $379.9 $1,153.0 $17.0 255.0 323.0 $ 595.0 391.0 $986.0 $ 170.0 102.0 34.0 $ 306.0 340.0 $646.0 307.9 32.1 $340.0 $986.0 Write out your answers completely. For example, 25 million should be entered as 25,000,000. Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign. a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 323000000 2021: $ 360000000 b. What was the 2021 free cash flow? $

Answer rating: 100% (QA)

To calculate the free cash flow for 2021 we need to follow these steps 1 Start with net income from ... View the full answer