P4-6 Finding operating and free cash flows Consider the following balance sheets and selected data from the income statement of Keith Corporation. 1,200 Keith Corporation Balance Sheets December 31 Assets 2019 2018 Cash $ 1,500 $ 1,000 Marketable securities 1,800 Accounts receivable 2,000 1,800 Inventories 2,900 2,800 Total current assets $ 8,200 $ 6,800 Gross fixed assets $29,500 $28,100 Less: Accumulated depreciation 14,700 13,100 Net fixed assets $14,800 $15,000 Total assets $23,000 $21,800 (continued) PART TWO Financial Tools Keith Corporation Balance Sheets (conti December 31 Liabilities and stockholders' equiry 2019 2018 Accounts payable $ 1,600 $ 1,500 Nors payable 2,800 2,200 Accruals 200 300 Total current liabilities $ 4,600 $ 4,000 Long-term debe 5,000 3,000 Total liabilities $ 9,600 $ 9,000 Common stock $10,000 $10,000 Retained earnings 3,400 2,800 Total stockholders' equity $13,400 $12,800 Total liabilities and stockholders' equity $23,000 $21,800 Keith Corporation Income Statement Data (2019) Depreciation expense $1,600 Earnings before interest and taxes (EBIT) 2,700 Interest expense 367 Net profits after taxes 1,400 Tax rate 21%