You have just obtained financial information for the past 2 years for Powell Panther Corporation. Answer the following questions.

a. What is the net operating profit after taxes (NOPAT) for 2004?

b. What are the amounts of net operating working capital for both years?

c. What are the amounts of total net operating capital for both years?

d. What is the free cash flow for 2004?

e. How can you explain the large increase in dividends in 2004?

Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2004 2003 $1,200.0 $1,000.0 Sales Operating costs excluding depreciation Depreciation Earnings before interest and taxes 1,020.0 850.0 30.0 25.0 $ 150.0 $ 125.0 Less interest 20.2 21.7 $ 128.3 $ 104.8 Earnings before taxes Taxes (40%) 51.3 41.9 Net income available to common stockholders $ 77.0 60.5 62.9 Common dividends 4.4 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Doliars) 2004 2003 Assets $ 12.0 $ 10.0 Cash and cquivalents Shert-term investments 0.0 0.0 Accounts reccivable 180.0 150.0 180.0 $372.0 200.0 Inventories Total current assets $360.0 Net plant and equipment 300.0 $672.0 250.0 Total assets $610.0 Liabilities and Equity $ 90.0 Accounts payable $108.0 Notes payable 67.0 51.5 Accruals 72.0 $247.0 60.0 Total current liabilities $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 carnings Common equity Total liabilities and equity 208.5 225.0 $275.0 $672.0 $258.5 $610.0