Keith Corporation Balance Sheets

December 31

Assets 2019 2018

Cash $1,500 $990

Marketable securities 1,760 1,240

Accounts receivable 1,950 1,750

Inventories 2,930 2,830

Total current assets $8,140 $6,810

Gross fixed assets $29,510 $28,150

Less: Accumulated depreciation 14,710 13,060

Net fixed assets $14,800 $15,090

Total assets $22,940 $21,900

Liabilities and Stockholders' Equity

Accounts payable $1,580 $1,460

Notes payable 2,810 2,200

Accruals 160 280

Total current liabilities $4,550 $3,940

Long-term debt $5,070 $5,170

Total liabilities $9,620 $9,110

Common stock $9,950 $9,950

Retained earnings 3,370 2,840

Total stockholders' equity $13,320 $12,790

Total liabilities and stockholders' equity $22,940 $21,900

Income Statement Data (2019)

Depreciation expense $1,650

Earnings before interest and taxes (EBIT) 2650

Interest expense 366

Net profits after taxes 1,804

Tax rate 21%

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).

PLEASE ANSWER ALL PARTS