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).

Keith Corporation Balance Sheets 2019 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 $1,450 1,790 2,020 2,910 $8,170 $29,470 14,650 $14,820 $22,990 $1,570 2,840 200 $4,610 $5,000 $9,610 $10,010 3,370 $13,380 $22,990 2018 $1,020 1,210 1,790 2,830 $6,850 $28,120 13,050 $15,070 $21,920 $1,470 2,220 290 $3,980 $5,150 $9,130 $10,010 2,780 $12,790 $21,920 Income Statement Data (2019) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Net profits after taxes Tax rate $1,600 2,650 370 1,801 21%