ZuoTi.Pro
Question

Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2015 $1,495.0 $1,300.0 1.121.0 1105.0 $374.0 $195.0 33.0 $332.0 $162.0 29.0 $299.0 $133.0 53.2 $79.8 2016 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) 42.0 Interest 33.0 Earnings before taxes (EBT) Taxes (40%) Net income 119.6 $179.4 $161.0 Common dividends $64.0
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2016 2015 Assets Cash and equivalents Accounts receivable Inventories $24.0 $20.0 215.0 195.0 257.0 234.0 $496.0 $449.0 423.0 325.0 $919.0 $774.0 Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable $98.0 $78.0 104.0 30.0 26.0 $253.0 $208.0 299.0 260.0 $552.0 $468.0 324.6 282.0 42.4 24.0 $367.0 $306.0 $919.0 $774.0 125.0 1 Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Common equity Total liabilities and equity
Write out your answers completely. For example, 25 million should be entered as 25,000,000 a. What was net operating working capital for 2015 and 2016? 2015: 2016: $ b. What was the 2016 free cash flow? c. How would you explain the large increase in 2016 dividends? 1. The large increase in free cash flow from 2015 to 2016 explains the large increase in 2016 dividends. II. The large increase in net income from 2015 to 2016 explains the large increase in 2016 dividends. III. The large increase in EBIT from 2015 to 2016 explains the large increase in 2016 dividends. IV, The large increase in sales from 2015 to 2016 explains the large increase in 2016 dividends. V. The large increase in retained earnings from 2015 to 2016 explains the large increase in 2 016 dividends. Select-
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Part A

Net operating working capital = current assets - (current liabilities - notes payable)

2015 = 449000000-(208000000-26000000) = 267000000

2016 = 496000000-(253000000-30000000)=273000000

Part B

Free cash flow = [EBIT(1 – T) + Depreciation] – [Capital expenditure + NOWC]

= ((332000000*(1-40%)+42000000)+((423000000-325000000+42000000)+(273000000-267000000)= 387200000

Part C

Answer is option B

It has to be net income and basis of dividends are distributed.

0 0
Add a comment
Know the answer?
Add Answer to:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2015 $1,495.0 $1,300.0...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

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

    Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2015 $1,495.0 $1,300.0 1121.0 1105.0 $374.0$%195.0 42.0 33.0 $332.0 $162.0 33.0 29.0 $299.0 $133.0 119.6 53.2 $179.4$79.8 2016 Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT Taxes (40%) Net income Common dividends $161.0 $64.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions...

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

    Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2016 2015 $3,375.0 $2,700.0 2.616.0 2.295.0 $759.0 $405.0 Sales EBITDA $688.0 $346.0 24.0 59.0 $614.0 $287.0 245.6 114.8 $368.4 $172.2 Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (40%) Net income Common dividends $332.0 $138.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2016 2015 Assets Cash and equivalents Accounts...

  • FREE CASH FLOW Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income...

    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) 2016 2015 Sales $1,560.0 $1,200.0 Operating costs excluding depreciation and amortization 1,209.0 1,020.0 EBITDA $351.0 $180.0 Depreciation and amortization 29.0 25.0 Earnings before interest and taxes (EBIT) $322.0 $155.0   Interest 34.0 26.0 Earnings before taxes (EBT) $288.0 $129.0   Taxes (40%) 115.2 51.6 Net income $172.8 $77.4 Common dividends $156.0 $62.0 Powell Panther Corporation: Balance Sheets...

  • Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales...

    Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $2,310.0 $2,100.0 Operating costs excluding depreciation and amortization 1785.0 1,733.0 $ 577.0 $ 315.0 EBITDA Depreciation and amortization 53.0 46.0 $ 269.0 Earnings before interest and taxes (EBIT) 524.0 Interest 51.0 46.0 Earnings before taxes (EBT) 473.0 223.0 Taxes (40%) 189.2 89.2. Net income $ 283.8 $ 133.8 Common dividends $255.0 $107.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)...

  • FREE CASH FLOW Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income...

    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) 2016 2015 Sales $1,955.0 $1,700.0 Operating costs excluding depreciation and amortization 1,466.0 1,445.0 EBITDA $489.0 $255.0 Depreciation and amortization 55.0 48.0 Earnings before interest and taxes (EBIT) $434.0 $207.0   Interest 43.0 37.0 Earnings before taxes (EBT) $391.0 $170.0   Taxes (40%) 156.4 68.0 Net income $234.6 $102.0 Common dividends $211.0 $82.0 Powell Panther Corporation: Balance Sheets...

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

    Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (40%) Net income 2018 $1,560.0 1.170.0 $ 390.0 32.0 $ 358.0 34.0 $ 324.0 129.6 2017 $1,300.0 1.105.0 $ 195.0 29.0 $ 166.0 29.0 $ 137.0 54.8 $ 194.4 82.2 Common dividends $ 175.0 Powell...

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

    Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2019 2018 Sales $ 2,990.0 $ 2,600.0 Operating costs excluding depreciation and amortization 2,243.0 2,210.0 EBITDA $ 747.0 $ 390.0 Depreciation and amortization 80.0 73.0 Earnings before interest and taxes (EBIT) $ 667.0 $ 317.0   Interest 65.8 57.2 Earnings before taxes (EBT) $ 601.2 $ 259.8   Taxes (25%) 240.5 103.9 Net income $ 360.7 $ 155.9 Common dividends...

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

    Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (259) Net income Common dividends 2019 2018 $3,240.0 $2,700.0 2.592.0 2.295.0 $ 648.0 $ 405.0 71.0 62.0 $ 577.0 $ 343.0 213 59.4 $ 505.7 $ 283.6 2023 113.4 $ 303.4 $ 170.2 $ 273.1...

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

    Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 2017 Sales $1,920.0 $1,600.0 Operating costs excluding depreciation and amortization 1,440.0 1,360.0 EBITDA $ 480.0 $ 240.0 Depreciation and amortization 56.0 46.0 Earnings before interest and taxes (EBIT) $ 424.0 $ 194.0 Interest 42.0 35.0 Earnings before taxes (EBT) $ 382.0 $ 159.0 Taxes (40%) 152.8 63.6 Net income $ 229.2 $ 95.4 Common dividends $ 206.0...

  • Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 22.0 2016 2015 Sales...

    Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 22.0 2016 2015 Sales $1,100.0 $1,000.0 Operating costs excluding depreciation 908.0 850.0 Depreciation and amortization 25.0 21.0 Earnings before interest and taxes $167.0 $129.0 Less Interest 24.0 Pre-tax income $143.0 $107.0 Taxes (40%) 57.2 42.8 Net income available to common stockholders $85.8 $64.2 Common dividends $51.0 Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2016 2015 $77.0 $14.0 6.0 195.0 231.0 $446.0 252.0 $698.0 $11.0...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT