Financial information for Powell Panther Corporation is shown below: Powell Pant

Question

Financial information for Powell Panther Corporation is shown below:

Powell Panther Corporation: Income Statements for Year Ending December 31 (Millions of Dollars)

Powell Panther Corporation: Balance Sheets as of December 31 (Millions of Dollars)

Write out your answers completely. For example, 25 million should be entered as 25,000,000.

? 2012 2011 Sales $2,500.0 $2,000.0 Operating costs excluding depreciation and amortization 2,000.0 1,700.0 EBITDA $500.0 $300.0 Depreciation and amortization 57.0 44.0 Earnings before interest and taxes $443.0 $256.0   Interest 55.0 44.0 Earnings before taxes $388.0 $212.0   Taxes (40%) 155.2 84.8 Net income $232.8 $127.2 Common dividends $210.0 $102.0

Explanation / Answer

2011 2012

current assests 671 546

less cash 30 26

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640 520

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current liabilities 395 320

less notes payable 50 40

accruals 120 170 100 140

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225 180

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net working capital 2011=640-225=415

net working capital 2012 =520-180=340

FREE CASH FLOW 2012

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EBIT+DEPRICIATION-(CHANGE IN NET WORKING CAPITAL)

256+44-(-75)=375

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