Financial information for Powell Panther Corporation is shown below:

Powell Panther Corporation: Income Statements for Year Ending December $31($millions of dollars$)$

$20212020$

Sales $ $2,880\mathrm{.}0$ $ $2,400\mathrm{.}0$

Operating costs excluding depreciation and amortization $2,160\mathrm{.}02,040\mathrm{.}0$

EBITDA $ $720\mathrm{.}0$ $ $360\mathrm{.}0$

Depreciation and amortization $81\mathrm{.}067\mathrm{.}0$

Earnings before interest and taxes $($EBIT$)$ $ $639\mathrm{.}0$ $ $293\mathrm{.}0$

Interest $63\mathrm{.}452\mathrm{.}8$

Earnings before taxes $($EBT$)$ $ $575\mathrm{.}6$ $ $240\mathrm{.}2$

Taxes $(25\%)230\mathrm{.}296\mathrm{.}1$

Net income $ $345\mathrm{.}4$ $ $144\mathrm{.}1$

Common dividends $ $310\mathrm{.}9$ $ $115\mathrm{.}3$

Powell Panther Corporation: Balance Sheets as of December $31($millions of dollars$)$

$20212020$

Assets

Cash and equivalents $ $41\mathrm{.}0$ $ $34\mathrm{.}0$

Accounts receivable $317\mathrm{.}0264\mathrm{.}0$

Inventories $605\mathrm{.}0504\mathrm{.}0$

Total current assets $ $963\mathrm{.}0$ $ $802\mathrm{.}0$

Net plant and equipment $806\mathrm{.}0672\mathrm{.}0$

Total assets $ $1,769\mathrm{.}0$ $ $1,474\mathrm{.}0$

Liabilities and Equity

Accounts payable $ $187\mathrm{.}0$ $ $144\mathrm{.}0$

Accruals $144\mathrm{.}0120\mathrm{.}0$

Notes payable $57\mathrm{.}648\mathrm{.}0$

Total current liabilities $ $388\mathrm{.}6$ $ $312\mathrm{.}0$

Long$-$term bonds $576\mathrm{.}0480\mathrm{.}0$

Total liabilities $ $964\mathrm{.}6$ $ $792\mathrm{.}0$

Common stock $726\mathrm{.}7638\mathrm{.}8$

Retained earnings $77\mathrm{.}743\mathrm{.}2$

Common equity $ $804\mathrm{.}4$ $ $682\mathrm{.}0$

Total liabilities and equity $ $1,769\mathrm{.}0$ $ $1,474\mathrm{.}0$

Write out your answers completely. For example, $25$ million should be entered as $25,000,000.$ Round your answers to the nearest dollar, if necessary. Negative values, if any, should be indicated by a minus sign.

What was net operating working capital for $2020$ and $2021?$ Assume the firm has no excess cash.

$2020$: $

$2021$: $

What was the $2021$ free cash flow?

$

How would you explain the large increase in $2021$ dividends?

The large increase in net income from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in EBIT from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in free cash flow from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in sales from $2020$ to $2021$ explains the large increase in $2021$ dividends.

The large increase in retained earnings from $2020$ to $2021$ explains the large increase in $2021$ dividends.

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