Finding operating and free cash flows Consider the balance sheets and selected 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). Keith Corporation Balance Sheets December 31 Assets This year Last year $1,520 1,800 2,020 2,890 $8,230 $29,500 14,720 $14,780 $23,010 $970 1,240 1,810 2,850 $6,870 $28,050 13,150 $14,900 $21,770 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 $1,550 2,820 200 $4,570 $5,060 $9,630 $10,000 3,380 $13,380 $23,010 $1,480 2,200 330 $4,010 $4,930 $8,940 $10,000 2,830 $12,830 $21,770 Income Statement Data (This year) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Net profits after taxes Tax rate $1,570 2,750 368 1,882 21%