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What was net operating working capital

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Reference no: EM132474348

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

$1,650.0

$1,500.0

Operating costs excluding depreciation and amortization

1,238.0

1,275.0

EBITDA

$        412.0

$       225.0

Depreciation and amortization

EU

41.Q

Earnings before interest and taxes (EBIT)

$        359.0

$       184.0

Interest

14.1

Th2

Earnings before taxes (EBT)

$                            322.7

$       151.0

Taxes (25%)

129.1

NA

Net income

$                            193.6

$         90.6

Common dividends

$                            174.2

$         72.5

Question 1: a. What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash. 2018: $ 2019: $

Question 1: b. What was the 2019 free cash flow?

Question 1: c. How would you explain the large increase in 2019 dividends?

I. The large increase in free cash flow from 2018 to 2019 explains the large increase in 2019 dividends.

II. The large increase in net income from 2018 to 2019 explains the large increase in 2019 dividends.

III. The large increase in BIT from 2018 to 2019 explains the large increase in 2019 dividends.

IV. The large increase in sales from 2018 to 2019 explains the large increase in 2019 dividends.

V. The large increase in retained earnings from 2018 to 2019 explains the large increase in 2019 dividends.

Reference no: EM132474348

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