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). 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.) DOOOO A. The OCF value is very meaningful because it shows that the cash flows from operations are adequate to cover both operating expense plus investme B. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT c. The FCF value is very meaningful because it shows that the cash flows from operations are adequate to cover both operating expense plus investmen D. Keith Corporation has negative cash flows from operating activities. E. Keith Corporation has positive cash flows from operating activities ata Table Keith Corporation Balance Sheets December 31 Assets 2019 2018 Cash $1,500 $950 Marketable securities 1,810 1,170 Accounts receivable 1,960 1,780 Inventories 2,860 2,780 Total current assets $8,130 $6,680 Gross fixed assets $29,450 $28,080 Less: Accumulated depreciation 14,670 13,110 Net fixed assets $14.780 $14.970 Total assets $22.910 $21,650 Liabilities and Stockholders' Equity Accounts payable $1.640 $1,480 Notes payable 2,800 2.210 Accruals 240 290 Total current liabilities $4.680 $3,980 Long-term debt $4,830 $4,850 Total liabilities $9,510 $8.830 Common stock $9.990 $9.990 Retained earnings 3.410 2.830 Total stockholders' equity $13.400 $12,820 Total liabilities and stockholders' equity $22.910 $21.650 It (Click on the inn here in order to renu the contents of the data tahle halow into a Print Done Book ht assets nel t assets. Accounts payable $1,640 $1,480 Notes payable 2,800 2,210 Accruals 240 290 Total current liabilities $4,680 $3,980 Long-term debt $4,830 $4,850 Total liabilities $9,510 $8,830 Common stock $9.990 $9,990 Retained earnings 3,410 2,830 Total stockholders' equity $13,400 $12,820 Total liabilities and stockholders' equity $22,910 $21,650 (Click on the icon here in order to copy the contents of the dati table below into a spreadsheet.) Income Statement Data (2019) $1,560 Depreciation expense 2,750 Earnings before interest and taxes (EBIT) 368 Interest expense 1,882 Net profits after taxes 21% Tax rate ad ad Print Done
