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.) A. Keith Corporation has negative cash flows from operating activities. 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 investment in fixed and current assets. D. 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. E. Keith Corporation has positive cash flows from operating activities. Keith Corporation Balance Sheets 2019 Assets Cash Marketable securities Accounts receivable Inventories Total current assets A 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 Income Statement Data (2019) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Net profits after taxes Tax rate December 31 $1,480 1,750 1,950 2,920 $8,100 $29,490 14,670 $14,820 $22,920 $1,570 2,840 240 $4,650 $4,850 $9,500 $9,990 3,430 $13,420 $22,920 2018 $950 1,250 1,850 2,850 $6,900 $28,150 13,100 $15,050 $21,950 $1,500 2,160 310 $3,970 $5,210 $9,180 $9,990 2,780 $12,770 $21,950 $1,570 2,700 368 1,842 21% 0