Consider the following summary of Summer Breeze Corporation’s financial statements.

a. Using Equation 4.1, calculate the firm’s net operating profit after tax (NOPAT) for the year ended December 31, 2015.

Equation 4.1:

b. Using Equation 4.3, calculate the firm’s operating cash flow (OCF) for the year ended December 31, 2015.

Equation 4.3:

c. How much cash is available to be distributed to the investors after the firm has met all operating needs and all investment needs?
d. Distinguish between the two cash flows calculated in parts b and c.

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Assets Cash Summer Breeze Corporation Balance Sheets Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and stockholders' equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2015 $ 2,000 2,400 2,200 3,000 $ 9,600 $30,900 16,300 $14,600 $24,200 $ 1,700 3,400 100 $ 5,200 5,000 $10,200 $10,000 4,000 $14,000 $24,200 2014 $ 1,500 1,800 2,000 2,900 $ 8,200 $29,500 14,700 $14,800 $23,000 $ 1,600 2,800 200 $ 4,600 5,000 $ 9,600 $10,000 3,400 $13,400 $23,000