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: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
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Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...
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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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