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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). Keith Corporation Balance Sheets December 31 Assets 2019 2018 Cash $1,490 $1,040 Marketable securities 1,760 1,170 Accounts receivable 1,960 1,740 Inventories 2,900 2,820 Total current assets $8,110 $6,770 Gross fixed assets $29,520 $28,090 Less: Accumulated depreciation 14,680 13,060 Net fixed assets $14,840 $15,030 Total assets $22,950 $21,800 Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $1,620 2,790 250 $4,660 $4,850 $9,510 $10,020 3,420 $13,440 $22,950 $1,480 2,170 310 $3,960 $5,000 $8,960 $10,020 2,820 $12,840 $21,800 Income Statement Data (2019) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Net profits after taxes Tax rate $1,620 2,650 372 1,800 21%

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