Ch 02: Assignment - Financial Statements, Cash Flow, and Taxes You are an industry analyst for the telecom sector. You are analyzing financial reports from two companies: BlastTel Inc. and SaneTel Corp. Corporate tax for both firms is 35%. Your associate analyst has calculated and compiled, in the following table, a list of important figures you need for the analysis: Data Collected BlastTel Inc. EBIT $260,100 Depreciation $91,035 Total operating capital $1,101,600 Net investment in operating capital $459,000 WACC 12.28% Sane Tel Corp. $107,100 $37,485 $457,470 $198,900 17.35% In your analysis, you want to look for several characteristics-one of them being the return on invested capital (ROIC). Using the information available, complete the following statements: The net operating profit after tax (NOPAT) for BlastTel Inc. is , whereas the NOPAT for SaneTel Corp. is BlastTel Inc. has a free cash flow of , whereas, Sane Tel Corp. has a free cash flow of BlastTel Inc. has a return on invested capital than SaneTel Corp. has. Your inference from the analysis is that both firms are in a high-growth phase, and their growth will be profitable. Considering your analysis, which of the following statements is true? O If a company has negative NOPAT but a positive free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth. O If a company has positive NOPAT but a negative free cash flow, then the firm could be in a high-growth phase and making investments in operating capital to support growth