Consider the balance sheets and selected data from the income statement of Keith Corporation that follow

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.

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).

Cash Balance

Keith Corporation Balance Sheets
	December 31
Assets	2019	2018
Cash	$1,470	$1,020
Marketable securities	1,770	1,180
Accounts receivable	2,030	1,850
Inventories	2,930	2,830
Total current assets	$8,200	$6,880
Gross fixed assets	$29,540	$28,090
Less: Accumulated depreciation	14,750	13,050
Net fixed assets	$14,790	$15,040
Total assets	$22,990	$21,920
Liabilities and Stockholders' Equity
Accounts payable	$1,550	$1,530
Notes payable	2,750	2,150
Accruals	170	350
Total current liabilities	$4,470	$4,030
Long-term debt	$5,210	$5,110
Total liabilities	$9,680	$9,140
Common stock	$9,960	$9,960
Retained earnings	3,350	2,820
Total stockholders' equity	$13,310	$12,780
Total liabilities and stockholders' equity	$22,990	$21,920

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Income Statement Data (2019)
Depreciation expense	$1,700
Earnings before interest and taxes (EBIT)	2,740
Interest expense	365
Net profits after taxes	1,876
Tax rate	21%