Question

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

Answer 1

A-
net operating working capital	total of operating assets- total of operating liabilities	(20+195+234)-(78+104)	267
net operating working capital 2016	total of operating assets- total of operating liabilities	(24+215+257)-(98+125)	273
B-
free cash flow	cash from operating activities-capital expenditure	223.4-98	125.4
capital expenditure	423-325	98
cash from operation
net income		179.4
add depreciation		42
changes in working capital
increase in A/R		-20
increase in inventory		-23
increase in A/P		20
increase in accruals		21
increase in notes payable		4
cash flow from operating activities			223.4
c-	large increase in net income from 2015-2016 explains the large increase in 2016 dividend