Financial information for Powell Panther Corporation is shown below: Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) 2018 Sales $ 1,625.0 $ 2017 1,300.0 Operating costs excluding depreciation and amortization 1,300.0 1,105.0 EBITDA $ 325.0 $ 195.0 Depreciation and amortization 39.0 31.0 Earnings before interest and taxes (EBIT) $ 286.0 $ 164.0 Interest 36.0 29.0 Earnings before taxes (EBT) $ 250.0 $ 135.0 Taxes (40%) 100.0 54.0 Net income $ 150.0 $ 81.0 Common dividends $ 135.0 $ 65.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 Assets Cash and equivalents $ 23.0 $ 2017 18.0 Accounts receivable 164.0 143.0 Inventories 343.0 312.0 Total current assets $ 530.0 $ 473.0 Net plant and equipment 390.0 312.0 Total assets $ 920.0 $ 785.0 Liabilities and Equity Accounts payable $ 94.0 $ 78.0 Accruals 90.0 78.0 Notes payable 33.0 26.0 Total current liabilities $ 217.0 $ 182.0 Long-term bonds 325.0 260.0 Total liabilities $ 542.0 $ 442.0 Common stock 339.0 319.0 Retained earnings 39.0 24.0 Common equity $ 378.0 $ 343.0 Total liabilities and equity $ 920.0 $ 785.0 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 2017 and 2018? Assume the firm has no excess cash. 2017: $ 2018: $ What was the 2018 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) 2018 Sales $ 1,625.0 $ 2017 1,300.0 Operating costs excluding depreciation and amortization 1,300.0 1,105.0 EBITDA $ 325.0 $ 195.0 Depreciation and amortization 39.0 31.0 Earnings before interest and taxes (EBIT) $ 286.0 $ 164.0 Interest 36.0 29.0 Earnings before taxes (EBT) $ 250.0 $ 135.0 Taxes (40%) 100.0 54.0 Net income $ 150.0 $ 81.0 Common dividends $ 135.0 $ 65.0 Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars) 2018 Assets Cash and equivalents $ 23.0 $ 2017 18.0 Accounts receivable 164.0 143.0 Inventories 343.0 312.0 Total current assets $ 530.0 $ 473.0 Net plant and equipment 390.0 312.0 Total assets $ 920.0 $ 785.0 Liabilities and Equity Accounts payable $ 94.0 $ 78.0 Accruals 90.0 78.0 Notes payable 33.0 26.0 Total current liabilities $ 217.0 $ 182.0 Long-term bonds 325.0 260.0 Total liabilities $ 542.0 $ 442.0 Common stock 339.0 319.0 Retained earnings 39.0 24.0 Common equity $ 378.0 $ 343.0 Total liabilities and equity $ 920.0 $ 785.0 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 2017 and 2018? Assume the firm has no excess cash. 2017: $ 2018: $ What was the 2018 free cash flow? $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Financial information for Powell Panther Corporation is shown below:
Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
|
2018 |
||||||||
| Sales | $ | 1,625.0 | $ |
2017 1,300.0 |
||||
| Operating costs excluding |
1,300.0 | 1,105.0 | ||||||
| EBITDA | $ | 325.0 | $ | 195.0 | ||||
| Depreciation and amortization | 39.0 | 31.0 | ||||||
| Earnings before interest and taxes (EBIT) | $ | 286.0 | $ | 164.0 | ||||
| Interest | 36.0 | 29.0 | ||||||
| Earnings before taxes (EBT) | $ | 250.0 | $ | 135.0 | ||||
| Taxes (40%) | 100.0 | 54.0 | ||||||
| Net income | $ |
|
$ |
|
||||
| Common dividends | $ |
|
$ |
|
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
| 2018 | ||||||||
| Assets | ||||||||
| Cash and equivalents | $ | 23.0 | $ |
2017 18.0
|
||||
| Accounts receivable | 164.0 | 143.0 | ||||||
| Inventories | 343.0 | 312.0 | ||||||
| Total current assets | $ | 530.0 | $ | 473.0 | ||||
| Net plant and equipment | 390.0 | 312.0 | ||||||
| Total assets | $ | 920.0 | $ | 785.0 | ||||
| Liabilities and Equity | ||||||||
| Accounts payable | $ | 94.0 | $ | 78.0 | ||||
| Accruals | 90.0 | 78.0 | ||||||
| Notes payable | 33.0 | 26.0 | ||||||
| Total current liabilities | $ | 217.0 | $ | 182.0 | ||||
| Long-term bonds | 325.0 | 260.0 | ||||||
| Total liabilities | $ | 542.0 | $ | 442.0 | ||||
| Common stock | 339.0 | 319.0 | ||||||
| 39.0 | 24.0 | |||||||
| Common equity | $ | 378.0 | $ | 343.0 | ||||
| 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.
-
What was net operating working capital for 2017 and 2018? Assume the firm has no excess cash.
2017: $
2018: $
-
What was the 2018
free cash flow ?$
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