Consider the following balance sheets and selected data from the income statement of Keith Corporation.

	December 31
Assets	2019	2018
Cash	$ 1,500	$ 1,000
Marketable securities	1,800	1,200
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
Liabilities and stockholders' equity
Accounts payable	$ 1,600	$ 1,500
Notes payable	2,800	2,200
Accruals	200	300
Total current liabilities	$ 4,600	$ 4,000
Long-term debt	5,000	5,000
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 Balance Sheets

Depreciation expense	$1,600
Earnings before interest and taxes (EBIT)	2,700
Interest expense	367
Net profits after taxes	1,400
Tax rate	21%
Keith Corporation Income Statement Data (2019)

1. Calculate the firm’s net operating profit after taxes (NOPAT) for the year ended December 31, 2019, using Equation 4.1. NOPAT=EBIT×(1 − T )
2. Calculate the firm’s operating cash flow (OCF) for the year ended December 31, 2019, using Equation 4.3. OCF = [EBIT×(1 − T )] + Depreciation
3. Calculate the firm’s free cash flow (FCF) for the year ended December 31, 2019, using Equation 4.4. FCF = OCF − Net fixed asset investment (NFAI) − Net current asset investment (NCAI)
4. Interpret, compare, and contrast your cash flow estimates in parts b and c.