Data Table - X Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow : 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). (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. The net operating profit after taxes is $. (Round to the nearest dollar.) b. The operating cash flow (OCF) is $. (Round to the nearest dollar.) c. The firm's free cash flow (FCF) is $ (Round to the nearest dollar.) d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). (Select all that apply.) A. Keith Corporation has negative cash flows from operating activities. B. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. C. Keith Corporation has positive cash flows from operating activities. D. 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. IE. 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. Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1,480 $950 Marketable securities 1,770 1.240 Accounts receivable 2,040 1,790 Inventories 2.850 2.850 Total current assets $8,140 S6,830 Gross fixed assets $29,490 $28.130 Less: Accumulated depreciation 14,700 13,080 Net fixed assets $14,790 $15,050 Total assets $22.930 $21,880 Liabilities and Stockholders' Equity Accounts payable $1,590 $1,550 Notes payable 2,780 2.190 Accruals 150 310 Total current liabilities $4,520 $4,050 Long-term debt $5,070 $5,050 Total liabilities $9,590 $9,100 Common stock $9,960 $9,960 Retained earnings 3,380 2,820 Total stockholders' equity $13.340 $12.780 Total liabilities and stockholders' equity $22.930 $21,880 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Income Statement Data (This year) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense $1,620 2,710 375 Print Done Data Table - X Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow : 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). (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. The net operating profit after taxes is $. (Round to the nearest dollar.) b. The operating cash flow (OCF) is $. (Round to the nearest dollar.) c. The firm's free cash flow (FCF) is $ (Round to the nearest dollar.) d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). (Select all that apply.) A. Keith Corporation has negative cash flows from operating activities. B. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. C. Keith Corporation has positive cash flows from operating activities. D. 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. IE. 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. Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1,480 $950 Marketable securities 1,770 1.240 Accounts receivable 2,040 1,790 Inventories 2.850 2.850 Total current assets $8,140 S6,830 Gross fixed assets $29,490 $28.130 Less: Accumulated depreciation 14,700 13,080 Net fixed assets $14,790 $15,050 Total assets $22.930 $21,880 Liabilities and Stockholders' Equity Accounts payable $1,590 $1,550 Notes payable 2,780 2.190 Accruals 150 310 Total current liabilities $4,520 $4,050 Long-term debt $5,070 $5,050 Total liabilities $9,590 $9,100 Common stock $9,960 $9,960 Retained earnings 3,380 2,820 Total stockholders' equity $13.340 $12.780 Total liabilities and stockholders' equity $22.930 $21,880 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Income Statement Data (This year) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense $1,620 2,710 375 Print Done