You have just received financial information for the past two years for Powell Panther Corporation

Income Statements Ending December 31 (millions of dollars)

	2000	1999
Sales	$1,200.00	$1,000.00
Operating Costs (excluding depreciation)	1,020.00	850
Depreciation	30	25
Earnings before interest and taxes	$150.00	$125.00
Less Interest expense	21.7	20.2
Earnings before taxes	$128.30	$104.80
Less taxes (40%)	51.3	41.9
Net income available to common equity	$77.00	$62.90
Common dividends	$0.61	$0.46

Balance Sheets Ending December 31

(millions of dollars)

	2000	1999
Cash and marketable securities	$12.00	$10.00
Accounts receivable	180	150
Inventories	180	200
Net plant and equipment	300	250
Total Assets	$672.00	$610.00

Accounts payable	$108.00	$90.00
Notes payable	67	51.5
Accruals	72	60
Long-term bonds	$150.00	$150.00
Common stock (50 million shares)	50	50
Retained earnings	225	208.5
Total liabilities and equity	$672.00	$610.00

a. What is the net operating profit (NOPAT) for 2000?

$90,000,000

b. What are the amounts of net operating working capital for 1999 and 2000?

$210,000,000 and $192,000,000

c. What are the amounts of total operating capital for 1999 and 2000?

$460,000,000 and $492,000,000

d. What is free cash flow for 2000?

$58,000,000

e. How much did the firm reinvest in itself over the accounting period?

$16,500,000

f. At the present time (12/31/2000), how large a check could the firm write without it bouncing?

$12,000,000

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