Question: Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow 1. Calculate the
Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow
1. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2015
Assets 2015 2014
Cash $1,480 $1,050
Marketable securities 1,790 1,250
Accounts receivable 1,960 1,760
Inventories 2,920 2,830
Total current assets $8,150 $6,890
Gross fixed assets $29,520 $28,090
Less: Accumulated depreciation 14,710 13,100
Net fixed assets $14,810 $14,990
Total assets $22,960 $21,880
Liabilities and Stockholders' Equity
Accounts payable $1,560 $1,510
Notes payable 2,750 2,200
Accruals 180 330
Total current liabilities $4,490 $4,040
Long-term debt $5,080 $5,050
Common stock $9,990 $9,990
Retained earnings 3,400 2,800
Total stockholders' equity $13,390 $12,790
Total liabilities and stockholders' equity $22,960 $21,880
Depreciation expense $1,610
Earnings before interest and taxes (EBIT) 2,750
Interest expense 369
Net profits after taxes 1,429
Tax rate 40%
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