Data Table

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Keith Corporation Balance Sheets
	December 31
Assets	2019	2018
Cash	$1,540	$1,020
Marketable securities	$1,820	$1,150
Accounts receivable	02,000	1,810
Inventories	2,900	2,790
Total current assets	$8,260	$6,770
Gross fixed assets	$29,450	$28,070
Less: Accumulated depreciation	14,670	13,130
Net fixed assets	$14,780	$14,940
Total assets	$23,040	$21,710
Liabilities and Stockholders' Equity
Accounts payable	$1,650	$1,530
Notes payable	2,790	2,250
Accruals	250	290
Total current liabilities	$4,690	$4,070
Long-term debt	$4,960	$4,930
Total liabilities	$9,650	$9,000
Common stock	$9,960	$9,960
Retained earnings	3,430	2,750
Total stockholders' equity	$13,390	$12,710
Total liabilities and stockholders' equity	$23,040	$21,710

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Income Statement Data (20192019)
Depreciation expense	$1,540
Earnings before interest and taxes (EBIT)	2,740
Interest expense	372
Net profits after taxes	1,871
Tax rate	21 %

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, 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). a. The net operating profit after taxes is $ . (Round to the nearest dollar.) b. The operating cash flow (OCF) is $ . (Round to the nearest dollar.) c. The firm's free cash flow (FCF) is $ . (Round to the nearest dollar.) d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). (Select all that apply.) A. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. B. Keith Corporation has positive cash flows from operating activities. OC. 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. The FCF 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. E. Keith Corporation has negative cash flows from operating activities. 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, 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). a. The net operating profit after taxes is $ . (Round to the nearest dollar.) b. The operating cash flow (OCF) is $ . (Round to the nearest dollar.) c. The firm's free cash flow (FCF) is $ . (Round to the nearest dollar.) d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). (Select all that apply.) A. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. B. Keith Corporation has positive cash flows from operating activities. OC. 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. The FCF 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. E. Keith Corporation has negative cash flows from operating activities