He has just collected financial information regarding two previous years of Powell Panther Corporation. Answer the following questions.

a. What will be the after-tax operating profit (UONDI) in 2005?

b. How much does the net operating working capital amount to in both years?

c. How much does the total net operating capital amount to in both years?

d. What is free cash flow in 2005?

e. Why the big dividend increases in that year?

Powell Panther Corporation: results statements for the year ending.

December 31 (in millions of dollars).

	2005	2004
Sales	$ 1 200.0	$ 1 000.0
Operating costs excluding depreciation	1 020.0	850
Depreciation	30	25
Interest and tax profits	$150.00	$125.00
Less interest	21.7	20.2
Profit before tax	$128.30	$104.80
Taxes (40%)	51.3	41.9
Net income available to common shareholders	$77.00	$62.90
Common dividends	60.5	4.4
Powell Panther Corporation: General Balances as of December 31 (in millions of dollars)	2005	2004
Active
Cash and equivalent	$12.00	$10.00
Short-term investments	0	0
Accounts receivable	180	150
Inventories	180	200
Total current assets	$372.00	$360.00
Net plant and equipment	300	250
Total asset	$672.00	$610.00
Liabilities and Capital
Accounts payable	$108.00	$90.00
Documents payable	67	51.5
Accumulations	72	60
Total current liabilities	$247.00	$201.50
Long-term bonds	150	150
Total liabilities	$397.00	$351.50
Common shares (50 Million)	50	50
Retained profits	225	208.5
Book capital	$275.00	$258.50
Total liabilities and equity	$672.00	$610.00

Profesor Note: All problems have to be presented in Microsoft Excel with each cell containing formulas underlined in yellow. In addition, you have to present a brief analysis of what the results mean for the company (use the add text box function), not a summary of how you solved the problems.