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 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). Sum 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 S. (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. 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. Keith Corporation has positive cash flows from operating activities. D. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. E. 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. Data table spreadsheet) Assets Cash December 31 2018 $1,000 1,200 1,800 $1,500 1,800 2,000 Marketable securities Accounts receivable Inventories 2,800 $6,800 Total current assets Gross fixed assets 2,900 $8,200 $29,500 14,700 $14,800 $28,100 Less: Accumulated depreciation Net fixed assets 13,100 $15,000 $21,800 Total assets $23,000 Liabilities and Stockholders' Equity Accounts payable $1,600 Notes payable 2,800 $1,500 2,200 300 $4,000 Accruals 200 Total current liabilities. $4,600 Long-term debt $5,000 $5,000 Total liabilities Common stock $9,600 $10,000 3,400 $9,000 $10,000 2,800 $12,800 Retained earnings Total stockholders' equity $13,400 Total liabilities and stockholders' equity $23,000 $21,800 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Income Statement Data (2019) Depreciation expense $1,600 Earnings before interest and taxes (EBIT) 2,700 367 Interest expense Net profits after taxes 1,400 21% Tax rate Keith Corporation Balance Sheets 2019