+ X V C C Search Textbook Solutions Get Homework Help With C 53 $1,000.0 850.0 $ 150,0 25.0 $ 125,0 20.2 S 1048 41.9 $ 62.9 $ 1,200.0 Sales 1,020.0 Operating costs excluding depreciation and amortization $ 180.0 EBITDA 30.0 Depreciation and amortization $ 150.0 Earnings before interest and taxes (EBIT) Interest 21.7 $ 128.3 Earnings before taxes (EBT) Taxes (40%) 51.3 $ 77.0 Net income $ 605 Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 12.0 $ 10.0 Accounts receivable 1800 150.0 Inventories 190.0 200.0 Total current assets $360.0 Net plant and equipment 300.0 2500 Total assets $ 672.0 $ 6100 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 Retained earnings 225.0 208.5 Common equity $275.0 $ 2585 Total liabilities and equity $672.0 $ 610.0 a. What was net operating working capital for 2017 and 2018? Assume the firm has no excess cash. b. What was the 2018 free cash flow? c. How would you explain the large increase in 2018 dividends? SOLO + X V C C Search Textbook Solutions Get Homework Help With C 53 $1,000.0 850.0 $ 150,0 25.0 $ 125,0 20.2 S 1048 41.9 $ 62.9 $ 1,200.0 Sales 1,020.0 Operating costs excluding depreciation and amortization $ 180.0 EBITDA 30.0 Depreciation and amortization $ 150.0 Earnings before interest and taxes (EBIT) Interest 21.7 $ 128.3 Earnings before taxes (EBT) Taxes (40%) 51.3 $ 77.0 Net income $ 605 Common dividends Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 2017 Assets Cash and equivalents $ 12.0 $ 10.0 Accounts receivable 1800 150.0 Inventories 190.0 200.0 Total current assets $360.0 Net plant and equipment 300.0 2500 Total assets $ 672.0 $ 6100 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 Retained earnings 225.0 208.5 Common equity $275.0 $ 2585 Total liabilities and equity $672.0 $ 610.0 a. What was net operating working capital for 2017 and 2018? Assume the firm has no excess cash. b. What was the 2018 free cash flow? c. How would you explain the large increase in 2018 dividends? SOLO