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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 follows: 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). a. The net operating profit after taxes is $. (Round to the nearest dollar.) b. The operating cash flow (OCF) is $. (Round to the nearest dollar.) c. The firm's free cash flow (FCF) is S (Round to the nearest dollar.) d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). (Select all that apply.) A. Keith Corporation has negative cash flows from operating activities B. Depreciation is approximately the same size as net operating profit after tax, so the operating cash flow is about twice the NOPAT. OC. Keith Corporation has positive cash flows from operating activities. D. The OCF value is very meaningful because it shows that the cash flows from operations are adequate to cover both operating expense plus investment in fixed and current assets. E. The FCF value is very meaningful because shows that the cash flows from operations are adequate to cover both operating expense plus investment in fixed and current assets. n Keith Corporation Balance Sheets December 31 Assets 2019 2018 Cash $1,450 $1,020 Marketable securities 1,840 1,150 Accounts receivable 1,990 1,790 Inventories 2,920 2,750 Total current assets $8,200 $6,710 Gross fixed assets $29,510 $28,150 Less: Accumulated depreciation 14,750 13,070 Net fixed assets $14,760 $15,080 Total assets $22.960 $21,790 Liabilities and Stockholders' Equity Accounts payable $1,650 $1,530 Notes payable 2,810 2.230 Accruals 180 330 Total current liabilities $4,640 $4,090 TULO ASSELS WZZ, JUU 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 Income Statement Data (2019) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Net profits after taxes Tax rate $1,650 2,810 180 $4.640 $4,930 $9,570 $10,010 3,380 $13,390 $22.960 $1,530 2.230 330 $4,090 $4,930 $9,020 $10,010 2,760 $12,770 $21,790 $1,680 2,670 366 1,820 21%

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