(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Keith Corporation Balance Sheets This year Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Income Statement Data (This year) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense December 31 Net profits after taxes Tax rate $1,530 1,800 1,980 2,870 $8,180 $29,450 14,740 $14,710 $22,890 $1,550 2,760 180 $4,490 $4,970 $9,460 $10,020 3,410 $13,430 $22,890 Last year 1,840 2,840 $6,810 $28,120 13,110 $15,010 $21,820 $1,470 2,150 290 $950 1,180 $3,910 $5,110 $9,020 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) $10,020 2,780 $12,800 $21,820 $1,630 2,690 366 1,836 21%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
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 this year.
b. Calculate the firm's operating cash flow (OCF) for the year.
c. Calculate the firm's free cash flow (FCF) for the year.
d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c).
Data table
(Click on the icon here in order to copy the contents of the data table below into
a spreadsheet.)
Assets
Cash
Marketable securities
Accounts receivable
Inventories
Total current assets
Gross fixed assets
Less: Accumulated depreciation
Net fixed assets
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Notes payable
Accruals
Keith Corporation Balance Sheets
Total current liabilities
Long-term debt
Total liabilities
Common stock
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
December 31
Income Statement Data (This year)
Depreciation expense
Earnings before interest and taxes (EBIT)
Interest expense
Net profits after taxes
Tax rate
This year
$1,530
1,800
1,980
2,870
$8,180
$29,450
14,740
$14,710
$22,890
$1,550
2,760
180
$4,490
$4,970
$9,460
$10,020
3,410
$13,430
$22,890
Last year
$950
1,180
1,840
2,840
$6,810
$28,120
13,110
$15,010
$21,820
$1,470
2,150
290
$3,910
$5,110
$9,020
$10,020
2,780
$12,800
$21,820
(Click on the icon here in order to copy the contents of the data table below into
a spreadsheet.)
$1,630
2,690
366
1,836
21%
-
X
..
Transcribed Image Text: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 this year. b. Calculate the firm's operating cash flow (OCF) for the year. c. Calculate the firm's free cash flow (FCF) for the year. d. Interpret, compare and contrast your cash flow estimate in parts (b) and (c). Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Assets Cash Marketable securities Accounts receivable Inventories Total current assets Gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Keith Corporation Balance Sheets Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 Income Statement Data (This year) Depreciation expense Earnings before interest and taxes (EBIT) Interest expense Net profits after taxes Tax rate This year $1,530 1,800 1,980 2,870 $8,180 $29,450 14,740 $14,710 $22,890 $1,550 2,760 180 $4,490 $4,970 $9,460 $10,020 3,410 $13,430 $22,890 Last year $950 1,180 1,840 2,840 $6,810 $28,120 13,110 $15,010 $21,820 $1,470 2,150 290 $3,910 $5,110 $9,020 $10,020 2,780 $12,800 $21,820 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) $1,630 2,690 366 1,836 21% - X ..
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education