Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that follow:

Keith Corporation Balance Sheets
	December 31
Assets	20192019	20182018
Cash	$1,460	$1,000
Marketable securities	$1,830	$1,180
Accounts receivable	$2,040	1,770
Inventories	$2,930	2,780
Total current assets	$8,260	$6,730
Gross fixed assets	$29,460	$28,050
Less: Accumulated depreciation	$14,670	$13,050
Net fixed assets	$14,790	$15,000
Total assets	$23,050	$21,730
Liabilities and Stockholders' Equity
Accounts payable	$1,560	$1,490
Notes payable	$2,840	$2,230
Accruals	$150	$270
Total current liabilities	$4,550	$3,990
Long-term debt	$5,140	$4,970
Total liabilities	$9,690	$8,960
Common stock	$9,980	$9,980
Retained earnings	$3,380	$2,790
Total stockholders' equity	$13,360	$12,770
Total liabilities and stockholders' equity	$23,050	$21,730

Income Statement Data (20192019)
Depreciation expense	$1,620
Earnings before interest and taxes (EBIT)	2,730
Interest expense	374
Net profits after taxes	1,861
Tax rate	21%

a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31,

20192019.

b. Calculate the firm's operating cash flow (OCF) for the year ended December 31,

20192019.

c. Calculate the firm's free cash flow (FCF) for the year ended December 31,

20192019.

d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c).