a. Calculate the firm's net operating profit after taxes (NOPAT) for this year. b. Calculate the firm's operating cash flow (OCF) for the year. c. Calculate the firm's free cash flow (FCF) for the year. d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). \begin{tabular}{crr} Retained earnings II & 3,400 & 2,750 \\ \cline { 2 - 3 } Total stockholders' equity & $13,400 & $12,750 \\ \cline { 2 - 3 } Total liabilities and stockholders' equity & $22,930 & $21,740 \\ \hline \end{tabular} \begin{tabular}{lr} Income Statement Data (This year) & \\ \hline Depreciation expense & $1,610 \\ Earnings before interest and taxes (EBIT) & 2,650 \\ Interest expense & 372 \\ Net profits after taxes & 1,800 \\ Tax rate & 21% \\ \hline \end{tabular} A. Keith Corporation has positive cash flows from operating activities. B. The FCF value is very meaningful because it shows that the cash flows from operations are adequate to cover both operating expense plus investment in fixed and current assets. C. The OCF value is very meaningful because it shows that the cash flows from operations are adequate to cover both operating expense plus investment in fixed and current assets. D. Keith Corporation has negative cash flows from operating activities. E. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. \begin{tabular}{lrr} I Assets & This year & Last year \\ \hline Cash & $1,460 & $980 \\ Marketable securities & 1,820 & 1,210 \\ Accounts receivable & 2,000 & 1,790 \\ Inventories & 2,860 & 2,850 \\ \cline { 2 - 3 } Total current assets & $8,140 & $6,830 \\ Gross fixed assets & $29,540 & $28,050 \\ Less: Accumulated depreciation & 14,750 & 13,140 \\ Net fixed assets & $14,790 & $14,910 \\ Total assets & $22,930 & $21,740 \\ \hline Liabilities and Stockholders' Equity & & \\ \hline Accounts payable & $1,600 & $1,490 \\ Notes payable & 2,790 & 2,200 \\ Accruals & 160 & 280 \\ Total current liabilities & $4,550 & $3,970 \\ Long-term debt & $4,980 & $5,020 \\ Total liabilities & $9,530 & $8,990 \\ Common stock & $10,000 & $10,000 \end{tabular}