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Document9 Home Insert Draw Design Layout References Mailings Review View e Share Comments Keith Corporation Balance Shoets $1,000 1,200 Marketable securmes Accounts reochvablc 2,000 2,900 s8,200 520,500 14,700 514,B00 otal current assets Groas 6,B0o $28,100 xed aases Net iued asscts 15,000 $21,000 Accounta payable Noles payatie 2,800 2,200 Tral cant inbiisea Long-term debt Total lablties Common sock Retained eamings $10,000 .400 $10,000 Total stockholders equity $21,800 Incame Statement Duta Eamings belone inte est and taxes EBIT) Imerest eaperse Net protts afer taxes Tax rate 2,700 387 1.400 Finding operating and free cash flows Consider the balance sheets and selected data fram the income statement of Keith Corporation that follow a. Calculate the firm's net aperatvng prant aftor taxas (NOPAT for the year ended December 31, 2019. b. Caloulate the firm's operating cash o (OCF) for the year ended December 31, 2019. c. Calculate the fir's free cash now (FCF) for the year ended December 31, 2019. d. Interpret, compare and oontrast your cash flow estimate in parts b) and(C). a. The net operatng profit ater tanes is (Round to the nearest dollar) b. The operating cash tow (OCF) ssRound to the nearest dollar.) c. The firm's free cash fow (FCF) sS 1(Round to the nearest dolar.) d. Interpret, compare and oontrast your cash flow estimate in parts (b) and (c). (Select all that apply) A. The OCF value is very meaningful because it shows that the cash flows from operations are adequate to cover both operating expense plus investment B. C. D. E in fixed and current assets Keith Corporation has negative cash flows from operating activities. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT Keith Corporation has positive cash flows from operating activities. The FCF values very meaningful because it shows at the cash flows rom operations are adequa e to cover bath operating expense plusinvestment in fixed and current assets. Page 1 of 1 1 word English (United States) + 153%

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