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Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Common dividends Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds. Total liabilities Common stock Retained earnings Common equity 2021 2020 $ $ $ $ $ 150.0 $ 120.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) $ $ 46.0 390.0 500.0 805.0 936.0 $735.0 130.0 55.0 $ 35.0 1,741.0 $ 1,435.0 300.0 248.0 $225.0 550.0 400.0 688.5 700.0 69.5 433.0 $ 375.0 100.0 50.0 983.0 $ 875.0 500.0 515.0 2021 2020 45.0 $ $ $ $ $ 2,750.0 $ 2,500.0 2,125.0 550.0 $ 375.0 81.0 $ 2,200.0 469.0 $ 305.0 60.5 408.5 163.4 245.1 70.0 220.6 55.0 $ 250.0 100.0 $ 758.0 $ 560.0 Total liabilities and equity $ 1,741.0 $1,435.0 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. a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 2021: $ b. What was the 2021 free cash flow?

Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Common dividends Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds. Total liabilities Common stock Retained earnings Common equity 2021 2020 $ $ $ $ $ 150.0 $ 120.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) $ $ 46.0 390.0 500.0 805.0 936.0 $735.0 130.0 55.0 $ 35.0 1,741.0 $ 1,435.0 300.0 248.0 $225.0 550.0 400.0 688.5 700.0 69.5 433.0 $ 375.0 100.0 50.0 983.0 $ 875.0 500.0 515.0 2021 2020 45.0 $ $ $ $ $ 2,750.0 $ 2,500.0 2,125.0 550.0 $ 375.0 81.0 $ 2,200.0 469.0 $ 305.0 60.5 408.5 163.4 245.1 70.0 220.6 55.0 $ 250.0 100.0 $ 758.0 $ 560.0 Total liabilities and equity $ 1,741.0 $1,435.0 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. a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 2021: $ b. What was the 2021 free cash flow?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Common dividends Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals. Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Common equity 2021 2020 $ $ $ $ $ $ $ $ 150.0 $ $ 120.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 46.0 $35.0 390.0 500.0 805.0 936.0 $ 735.0 55.0 1,741.0 $ 1,435.0 300.0 248.0 $225.0 130.0 550.0 400.0 983.0 688.5 700.0 69.5 433.0 $ 375.0 100.0 50.0 500.0 $ 875.0 515.0 45.0 2021 758.0 $ 560.0 $ 1,741.0 $ 1,435.0 $ $ $ 2020 2,750.0 $ 2,500.0 2,200.0 550.0 81.0 469.0 $ 163.4 2,125.0 $ 375.0 70.0 245.1 60.5 408.5 $ 250.0 220.6 305.0 55.0 100.0 $ Total liabilities and equity $ 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. a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 2021: $ b. What was the 2021 free cash flow?
Transcribed Image Text:Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (millions of dollars) Sales Operating costs excluding depreciation and amortization EBITDA Depreciation and amortization Earnings before interest and taxes (EBIT) Interest Earnings before taxes (EBT) Taxes (25%) Net income Common dividends Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals. Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Common equity 2021 2020 $ $ $ $ $ $ $ $ 150.0 $ $ 120.0 Powell Panther Corporation: Balance Sheets as of December 31 (millions of dollars) 46.0 $35.0 390.0 500.0 805.0 936.0 $ 735.0 55.0 1,741.0 $ 1,435.0 300.0 248.0 $225.0 130.0 550.0 400.0 983.0 688.5 700.0 69.5 433.0 $ 375.0 100.0 50.0 500.0 $ 875.0 515.0 45.0 2021 758.0 $ 560.0 $ 1,741.0 $ 1,435.0 $ $ $ 2020 2,750.0 $ 2,500.0 2,200.0 550.0 81.0 469.0 $ 163.4 2,125.0 $ 375.0 70.0 245.1 60.5 408.5 $ 250.0 220.6 305.0 55.0 100.0 $ Total liabilities and equity $ 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. a. What was net operating working capital for 2020 and 2021? Assume the firm has no excess cash. 2020: $ 2021: $ b. What was the 2021 free cash flow?
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