Consider the balance sheets and selected data from the income statement of Keith Corporation that follow

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.

a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31,

2019.

b. Calculate the firm's operating cash flow (OCF) for the year ended December 31,

2019.

c. Calculate the firm's free cash flow (FCF) for the year ended December 31,

2019.

d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c).

Keith Corporation Balance Sheets
	December 31
Assets	2019	2018
Cash	$1,500	$1,000
Marketable securities	1,800	1,200
Accounts receivable	2,000	1,800
Inventories	2,900	2,800
Total current assets	$8,200	$6,800
Gross fixed assets	$29,500	$28,100
Less: Accumulated depreciation	14,700	13,100
Net fixed assets	$14,800	$15,000
Total assets	$23,000	$21,800
Liabilities and Stockholders' Equity
Accounts payable	$1,600	$1,500
Notes payable	2,800	2,200
Accruals	200	300
Total current liabilities	$4,600	$4,000
Long-term debt	$5,000	$5,000
Total liabilities	$9,600	$9,000
Common stock	$10,000	$10,000
Retained earnings	3,400	2,800
Total stockholders' equity	$13,400	$12,800
Total liabilities and stockholders' equity	$23,000	$21,800

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Income Statement Data (2019)
Depreciation expense	$1,600
Earnings before interest and taxes (EBIT)	2,700
Interest expense	367
Net profits after taxes	1,400
Tax rate	21%