Finding operating and free cash flows 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

2019.

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

2019

2019.

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

2019

2019.

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

Keith Corporation Balance Sheets
	December 31
Assets	2019 2019	2018 2018
Cash	$ 1 comma 540 $1,540	$ 980 $980
Marketable securities	1 comma 830 1,830	1 comma 210 1,210
Accounts receivable	2 comma 010 2,010	1 comma 850 1,850
Inventories	2 comma 860 2,860	2 comma 780 2,780
Total current assets	$ 8 comma 240 $8,240	$ 6 comma 820 $6,820
Gross fixed assets	$ 29 comma 530 $29,530	$ 28 comma 140 $28,140
Less: Accumulated depreciation	14 comma 700 14,700	13 comma 060 13,060
Net fixed assets	$ 14 comma 830 $14,830	$ 15 comma 080 $15,080
Total assets	$ 23 comma 070 $23,070	$ 21 comma 900 $21,900
Liabilities and Stockholders' Equity
Accounts payable	$ 1 comma 590 $1,590	$ 1 comma 500 $1,500
Notes payable	2 comma 840 2,840	2 comma 210 2,210
Accruals	150 150	310 310
Total current liabilities	$ 4 comma 580 $4,580	$ 4 comma 020 $4,020
Long-term debt	$ 5 comma 130 $5,130	$ 5 comma 070 $5,070
Total liabilities	$ 9 comma 710 $9,710	$ 9 comma 090 $9,090
Common stock	$ 9 comma 970 $9,970	$ 9 comma 970 $9,970
Retained earnings	3 comma 390 3,390	2 comma 840 2,840
Total stockholders' equity	$ 13 comma 360 $13,360	$ 12 comma 810 $12,810
Total liabilities and stockholders' equity	$ 23 comma 070 $23,070	$ 21 comma 900 $21,900

Income Statement Data ( 2019 2019)
Depreciation expense	$ 1 comma 640 $1,640
Earnings before interest and taxes (EBIT)	2 comma 650 2,650
Interest expense	365 365
Net profits after taxes	1 comma 805 1,805
Tax rate	21 % 21%