P4-6 Finding operating and free cash flows Consider the following balance sheets and selected data from the income statement of Keith Corporation. Assets Cash Marketable securities Accounts receivable Inventories Keith Corporation Balance Sheets Total current assets Gross fixed assets Less: Accumulated depreciation. Net fixed assets Total assets PART TWO Financial Tools Keith Corporation Balance Sheets fecontinued) Liabilities and stockholders equity Accounts payable Nores payable Accruals Total current liabilities Long-term debe Total liabilities Common stock Retained camings Total stockholders' equiry Total liabilities and stockholders equity 2019 $ 1,500 1,800 2,000 2,900 $ 8,200 $29,500 14,700 $14,800 $23,000 Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Net profits after taxes Tax rate 2019 $ 1,600 2.800 200 $4,600 5,000 $ 9.600 $10,000 5,400 $13,400 $23,000 Keith Corporation Income Statement Data (2019) December 31 December 31 2018 $ 1,500 2,200 300 $ 4,000 5,000 $ 9,000 $10,000 7,800 $12,800 $21,800 $1,600 2,700 de 1,400 2018 $ 1,000 1,200 1,800 2,800 $ 6,800 $28,100 13,100 $15,000 $21,800 (continued) a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2019, using Equation 4.1. b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2019, using Equation 4.3. c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2019, using Equation 4.4. d. Interpret, compare, and contrast your cash flow estimates in parts b and c.

P4-6 Finding operating and free cash flows Consider the following balance sheets and selected data from the income statement of Keith Corporation. nart two Meanial Tees 2. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2019, using Equation 4,1. b. Calculate the firm's operating eash flow (OC) for the year ended December 31. 2019, using Equation 4.3. c. Cakulate the firm's free cash flow (PCF) for the year ended December 31,2019, ating Equation 4,4. d. Interpret, compare, and contrast your cash flow estimates in parts b and c