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) a. The net operating profit after taxes is $]. (Round to the nearest doltar.) 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. 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. B. Keith Corporation has negative cash flows from operating activities. C. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. D. Keith Corporation has positive cash flows from operating activities. 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. Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1,540 $970 Marketable securities 1,760 1,210 Accounts receivable 2,020 1,820 Inventories 2,870 2,760 Total current assets $8,190 $6,760 Gross fixed assets $29,550 $28,140 Less: Accumulated depreciation 14,680 13,150 Net fixed assets $14,870 $14,990 Total assets $23,060 $21.750 Liabilities and Stockholders' Equity Accounts payable $1,590 $1,520 Notes payable 2,760 2,180 Accruals 200 290 Total current liabilities $4,550 $3,990 Long-term debt $5,090 $4,930 Total liabilities $9,640 $8,920 Common stock $10,020 $10,020 Retained earnings 3,400 2,810 Total stockholders' equity $13,420 $12,830 Total liabilities and stockholders' equity $23,060 $21,750 (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 Net profits after taxes Tax rate $1,530 2,730 368 1,866 21% Finding operating and tree cash flows consider the balance sheets and selected data from encome statement of Kath Corporation that totown a. Calculate the 's reporting groteatere INOPAT) for this year b. Calculate the firm's operating cash flow (OCF) for the year e Calculate the firm free cash flow (FCF for the you d. Interpret compare and contrast your cash flow estimate in parts) and (c) . The net operating profit after tesis sound to the nearest dollar) b. The operating cash flow (OCF) Round to the nearest data) c. The firew's froe cash Row (FCF) is $] Round to the nearest dolar de Interpret compare and contrast your cash flow estimate in parts and (el Select all that apply CA The Fof es very meaning because shows that the cash flows from operations are adequate to cover both operating expense plus investment es and current assets O Koit Corporation has negative cash flows from operating activities DC Depreciation is approximately the same sient operating profiter texto the operating cash flow about twice NOPAT Go Keith Corporation has positive cash flows from operating activities DE 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 feed and current Data table (Click on the con here in order to copy the contents of the datatable below into a spreadsheet.) Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1.540 5970 Marketable securities 1.760 1,210 Accounts receivable 2020 1,820 Inventories 2.870 2,760 Totalcuments 56,190 $6,760 Grossfieds 529 550 $28,140 Les Accumulated depreciation 14650 13.150 Netfreda $147 $14,90 Total assets 523000 $21,750 Liabilities and Stockholders' Equity Accounts payable $1.500 $1,520 Notes payati 2.700 2,180 Acchia 200 Total currenties 56550 $3,900 Lengteet $5.00 $4,930 Total abilities $9.540 58.820 Common stock $10.000 $10.020 Retained earnings 3.400 2,810 Total stockholders'uty $13420 $12.630 Total absolders' equity $23.060 $21,750 (Click on the con here in order to copy the contents of the datatable below into a spreadsheet.) Income Statement Data (This year Depreciation experte $15.30 Earnings before interest and taxes (EBIT) 2,730 Interest expense 30 Net profits where 1.866 Tax rate 215 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) a. The net operating profit after taxes is $]. (Round to the nearest doltar.) 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. 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. B. Keith Corporation has negative cash flows from operating activities. C. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. D. Keith Corporation has positive cash flows from operating activities. 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. Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1,540 $970 Marketable securities 1,760 1,210 Accounts receivable 2,020 1,820 Inventories 2,870 2,760 Total current assets $8,190 $6,760 Gross fixed assets $29,550 $28,140 Less: Accumulated depreciation 14,680 13,150 Net fixed assets $14,870 $14,990 Total assets $23,060 $21.750 Liabilities and Stockholders' Equity Accounts payable $1,590 $1,520 Notes payable 2,760 2,180 Accruals 200 290 Total current liabilities $4,550 $3,990 Long-term debt $5,090 $4,930 Total liabilities $9,640 $8,920 Common stock $10,020 $10,020 Retained earnings 3,400 2,810 Total stockholders' equity $13,420 $12,830 Total liabilities and stockholders' equity $23,060 $21,750 (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 Net profits after taxes Tax rate $1,530 2,730 368 1,866 21% Finding operating and tree cash flows consider the balance sheets and selected data from encome statement of Kath Corporation that totown a. Calculate the 's reporting groteatere INOPAT) for this year b. Calculate the firm's operating cash flow (OCF) for the year e Calculate the firm free cash flow (FCF for the you d. Interpret compare and contrast your cash flow estimate in parts) and (c) . The net operating profit after tesis sound to the nearest dollar) b. The operating cash flow (OCF) Round to the nearest data) c. The firew's froe cash Row (FCF) is $] Round to the nearest dolar de Interpret compare and contrast your cash flow estimate in parts and (el Select all that apply CA The Fof es very meaning because shows that the cash flows from operations are adequate to cover both operating expense plus investment es and current assets O Koit Corporation has negative cash flows from operating activities DC Depreciation is approximately the same sient operating profiter texto the operating cash flow about twice NOPAT Go Keith Corporation has positive cash flows from operating activities DE 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 feed and current Data table (Click on the con here in order to copy the contents of the datatable below into a spreadsheet.) Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1.540 5970 Marketable securities 1.760 1,210 Accounts receivable 2020 1,820 Inventories 2.870 2,760 Totalcuments 56,190 $6,760 Grossfieds 529 550 $28,140 Les Accumulated depreciation 14650 13.150 Netfreda $147 $14,90 Total assets 523000 $21,750 Liabilities and Stockholders' Equity Accounts payable $1.500 $1,520 Notes payati 2.700 2,180 Acchia 200 Total currenties 56550 $3,900 Lengteet $5.00 $4,930 Total abilities $9.540 58.820 Common stock $10.000 $10.020 Retained earnings 3.400 2,810 Total stockholders'uty $13420 $12.630 Total absolders' equity $23.060 $21,750 (Click on the con here in order to copy the contents of the datatable below into a spreadsheet.) Income Statement Data (This year Depreciation experte $15.30 Earnings before interest and taxes (EBIT) 2,730 Interest expense 30 Net profits where 1.866 Tax rate 215