CHAPTER 4 Cash Flow and Financial Planning 197 Summer Breeze Corporation Income Statement Data (2015) Depreciation expense $1,800 Earnings before interest and taxes (EBIT) 2,900 Interest expense 397 Net profits after taxes 1,600 Tax rate 40% a. Using Equation 4.1, calculate the firm's net operating profit after tax (NOPAT) for the year ended December 31, 2015. b. Using Equation 4.3, calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015. c. How much cash is available to be distributed to the investors after the firm has met all operating needs and all investment needs? Cod. Distinguish between the two cash flows calculated in parts b and c. 2 P4-6 Summer Breeze Corporation Balance Sheets 2014 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets December 31 2015 $ 2,000 2,400 2,200 3,000 $ 9,600 $30,900 16,300 $14,600 $24,200 $ 1,500 1,800 2,000 2,900 $ 8,200 $29,500 14,700 $14,800 $23,000 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 $ 1,700 3,400 100 $ 5,200 5,000 $10,200 $10,000 4,000 $14,000 $24,200 $ 1,600 2,800 200 $ 4,600 5,000 $ 9,600 $10,000 3,400 $13,400 $23,000 Finding operating and free cash flows Consider the following summary of Summe Breeze Corporation's financial statements