Financial information for Powell Panther Corporation is shownbelow: Powell Panther Corporation: Income Statements for YearEnding December 31 (Millions of Dollars) 2016 2015 Sales $1,680.0$1,400.0 Operating costs excluding depreciation and amortization1,344.0 1,190.0 EBITDA $336.0 $210.0 Depreciation and amortization37.0 29.0 Earnings before interest and taxes (EBIT) $299.0 $181.0Interest 37.0 31.0 Earnings before taxes (EBT) $262.0 $150.0 Taxes(40%) 104.8 60.0 Net income $157.2 $90.0 Common dividends $141.0$72.0 Powell Panther Corporation: Balance Sheets as of December 31(Millions of Dollars) 2016 2015 Assets Cash and equivalents $23.0$20.0 Accounts receivable 200.0 182.0 Inventories 252.0 210.0 Totalcurrent assets $475.0 $412.0 Net plant and equipment 368.0 294.0Total assets $843.0 $706.0 Liabilities and Equity Accounts payable$101.0 $84.0 Accruals 140.0 112.0 Notes payable 34.0 28.0 Totalcurrent liabilities $275.0 $224.0 Long-term bonds 336.0 280.0 Totalliabilities $611.0 $504.0 Common stock 188.8 175.0 Retainedearnings 43.2 27.0 Common equity $232.0 $202.0 Total liabilitiesand equity $843.0 $706.0 Write out your answers completely. Forexample, 25 million should be entered as 25,000,000. What was netoperating working capital for 2015 and 2016? 2015: $ 2016: $ Whatwas the 2016 free cash flow? $ How would you explain the largeincrease in 2016 dividends? The large increase in net income from2015 to 2016 explains the large increase in 2016 dividends. Thelarge increase in free cash flow from 2015 to 2016 explains thelarge increase in 2016 dividends. The large increase in EBIT from2015 to 2016 explains the large increase in 2016 dividends. Thelarge increase in sales from 2015 to 2016 explains the largeincrease in 2016 dividends. The large increase in retained earningsfrom 2015 to 2016 explains the large increase in 2016 dividends.Check My Work (2 remaining) Icon Key Previous Question 9 of9Problem 3.17