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The answers in the boxes are not correct Finding operating and free cash flows Consider the balance sheets and selected data from the income statement

The answers in the boxes are not correct

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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, 2015. b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015. c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2015. d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). a. The net operating profit after taxes is 1,596 (Round to the nearest dollar. b. The operating cash flow (OCF) is 3,256 (Round to the nearest dollar.) c. The firm's free cash flow (FCF) is 586 (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 The FCF value is very meanin because it shows that the cash flows from operations are adequate to cover both operating expense plus investment in fixed gful and current assets. C. 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. D. Keith Corporation has positive cash flows from operating activities. E. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT

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