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.) a. The net operating profit after taxes is (Round to the nearest dollar.) Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1,530 $960 Marketable securities 1,840 1,200 Accounts receivable 1,990 1,810 Inventories 2,930 2,770 Total current assets $8,290 $6,740 Gross fixed assets $29,550 $28,130 Less: Accumulated depreciation 15,214 13,100 Net fixed assets $14,336 $15,030 Total assets $22,626 $21,770 Liabilities and Stockholders' Equity Accounts payable $1,640 $1,500 Notes payable 2,810 2,160 Accruals 160 320 Total current liabilities $4,610 $3,980 Long-term debt Total liabilities $4,576 $4,990 $9,186 $8,970 Common stock $10,050 $10,050 Retained earnings 3,390 2,750 Total stockholders' equity $13,440 $12,800 Total liabilities and stockholders' equity $22,626 $21,770 Print Done
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.) a. The net operating profit after taxes is (Round to the nearest dollar.) Keith Corporation Balance Sheets December 31 Assets This year Last year Cash $1,530 $960 Marketable securities 1,840 1,200 Accounts receivable 1,990 1,810 Inventories 2,930 2,770 Total current assets $8,290 $6,740 Gross fixed assets $29,550 $28,130 Less: Accumulated depreciation 15,214 13,100 Net fixed assets $14,336 $15,030 Total assets $22,626 $21,770 Liabilities and Stockholders' Equity Accounts payable $1,640 $1,500 Notes payable 2,810 2,160 Accruals 160 320 Total current liabilities $4,610 $3,980 Long-term debt Total liabilities $4,576 $4,990 $9,186 $8,970 Common stock $10,050 $10,050 Retained earnings 3,390 2,750 Total stockholders' equity $13,440 $12,800 Total liabilities and stockholders' equity $22,626 $21,770 Print Done
Chapter10: Measuring Exposure To Exchange Rate Fluctuations
Section: Chapter Questions
Problem 2BIC
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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.)
a. The net operating profit after taxes is
(Round to the nearest dollar.)
Keith Corporation Balance Sheets
December 31
Assets
This year
Last year
Cash
$1,530
$960
Marketable securities
1,840
1,200
Accounts receivable
1,990
1,810
Inventories
2,930
2,770
Total current assets
$8,290
$6,740
Gross fixed assets
$29,550
$28,130
Less: Accumulated depreciation
15,214
13,100
Net fixed assets
$14,336
$15,030
Total assets
$22,626
$21,770
Liabilities and Stockholders' Equity
Accounts payable
$1,640
$1,500
Notes payable
2,810
2,160
Accruals
160
320
Total current liabilities
$4,610
$3,980
Long-term debt
Total liabilities
$4,576
$4,990
$9,186
$8,970
Common stock
$10,050
$10,050
Retained earnings
3,390
2,750
Total stockholders' equity
$13,440
$12,800
Total liabilities and stockholders' equity
$22,626
$21,770
Print
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