Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2019 2018 Sales $ 1,200.0 $1,000.0 Operating costs excluding depreciation and amortization 1,020.0 850.0...

 Financial information for Powell Panther Corporation is shown here.

a.    What was net operating working capital for 2018 and 2019? Assume the firm has no excess cash.
b.   What was the 2019 free cash flow?
c.    How would you explain the large increase in 2019 dividends?

Extracted text: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) 2019 2018 Sales $ 1,200.0 $1,000.0 Operating costs excluding depreciation and amortization 1,020.0 850.0 EBITDA $ 180.0 $ 150.0 Depreciation and amortization 30.0 25.0 Earnings before interest and taxes (EBIT) $ 150.0 $ 125.0 Interest 21.7 20.2 Earnings before taxes (EBT) $ 128.3 $ 104.8 Taxes (25%) 32.1 26.2 $ 78.6 $ 61.3 Net income 96.2 Common dividends 79.7 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 2019 2018 Assets Cash and equivalents $ 12.0 $ 10.0 Accounts receivable 180.0 150.0 Inventories 180.0 200.0 $ 372.0 300.0 $ 672.0 Total current assets $ 360.0 Net plant and equipment 250.0 Total assets $610.0 Liabilities and Equity Accounts payable $108.0 $ 90.0 Accruals 72.0 60.0 Notes payable 67.0 515 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 50.0 Retained earnings 225.0 208.5 Common equity $275.0 $ 258.5 Total liabilities and equity $672.0 $610.0