Consider the balance sheets and selected data from the income statement of Keith Corporation that...
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Consider the balance sheets and selected data from the income statement of Keith Corporation that follow Finding operating and free cash flows 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). Keith Corporation Balance Sheets December 31 Assets 2019 2018 Cash $1,460 1,760 1,950 2,900 $990 Marketable securities 1,190 1,750 2,840 Accounts receivable Inventories Total current assets $8,070 $29,510 14,710 $6,770 $28,050 Gross fixed assets Less: Accumulated depreciation 13,070 Net fixed assets $14,800 $14,980 $21,750 Total assets $22,870 Lisbiliion. Liabilities and Stockholders' Equity Accounts payable $1,630 2,780 $1,450 2,170 Notes payable Accruals 220 340 Total current liabilities $4,630 $3,960 Long-term debt $4,830 $5,040 Total liabilities $9,460 $9,000 Common stock $9,990 3,420 $9,990 2,760 Retained earnings Total stockholders' equity $13,410 $12,750 Total liabilities and stockholders' equity $22,870 $21,750 Income Statement Data (2019) Depreciation expense Earnings before interest and taxes (EBIT) $1,640 2,720 Interest expense 368 Net profits after taxes 1,858 Tax rate 21%
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