Consider the balance sheets and selected data from the income statement of Keith Corporation that follow (attached)
a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended December 31, 2015.
b. Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015.
c. Calculate the firm's free cash flow (FCF) for the year ended December 31, 2015.
d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c).
Extracted text: Data Table December 31 Assets 2015 2014 Cash $1,500 $990 1,180 1,790 Marketable securities 1,850 2,030 Accounts receivable Inventories 2,850 2,850 $8,230 $29,470 Total current assets $6,810 $28,110 13,060 Gross fixed assets Less: Accumulated depreciation 14,710 Net fixed assets $14,760 $22,990 $15,050 Total assets $21,860 Liabilities and Stockholders' Equity Accounts payable Notes payable $1,450 2,210 $1,650 2,790 Accruals 210 300 $4,650 $3,960 $5,080 Total current liabilities Long-term debt $4,890 $9,540 $10,000 3,450 Total liabilities $9,040 Common stock $10,000 Retained earnings 2,820 Total stockholders' equity Total liabilities and stockholders' equity $13,450 $12,820 $22,990 $21,860 Income Statement Data (2015) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense $1,650 2,720 371 Net profits after taxes 1,409 Tax rate 40%