3-15 Powell Panther Corporation: Income Statements for Year Ending December 31 (
ID: 2636765 • Letter: 3
Question
3-15 Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)
?
2012
2011
Sales
$1,200.0
$1,000.0
Operating costs excluding depreciation and amortization
1,020.0
850.0
EBITDA
$180.0
$150.0
Depreciation and amortization
30.0
25.0
Earnings before interest and taxes
$150.0
$125.0
Interest
21.7
20.2
Earnings before taxes
$128.3
$104.8
Taxes (40%)
51.3
41.9
Net income
$77.0
$62.9
Common dividends
$60.5
$46.4
Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)
2012
2011
Assets
Cash and equivalents
$12.0
$10.0
Accounts receivable
180.0
150.0
Inventories
180.0
200.0
Total current assets
$372.0
$360.0
Net plant and equipment
300.0
250.0
Total assets
$672.0
$610.0
Liabilities and Equity
Accounts payable
$108.0
$90.0
Notes payable
67.0
51.5
Accruals
72.0
60.0
Total current liabilities
$247.0
$201.5
Long-term bonds
150.0
150.0
Total debt
$397.0
$351.5
Common stock
50.0
50.0
Retained earnings
225.0
208.5
Common equity
$275.0
$258.5
Total liabilities and equity
$672.0
$610.0
Write out your answers completely. For example, 25 million should be entered as 25,000,000.
What was net operating working capital for 2011 and 2012?
2011: $
2012: $
What was the 2012 free cash flow?
$
How would you explain the large increase in 2012 dividends?
?
2012
2011
Sales
$1,200.0
$1,000.0
Operating costs excluding depreciation and amortization
1,020.0
850.0
EBITDA
$180.0
$150.0
Depreciation and amortization
30.0
25.0
Earnings before interest and taxes
$150.0
$125.0
Interest
21.7
20.2
Earnings before taxes
$128.3
$104.8
Taxes (40%)
51.3
41.9
Net income
$77.0
$62.9
Common dividends
$60.5
$46.4
Explanation / Answer
$58,000,000
How would you explain the large increase in 2012 dividends?
Dividend 60.5 - 46.4 = $ 14.1
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