Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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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).
a. The net operating profit after taxes is $
(Round to the nearest dollar.)
Transcribed Image Text: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
Income Statement Data (This year)
Depreciation expense
Earnings before interest and taxes (EBIT)
Interest expense
December 31
Net profits after taxes
Tax rate
This year
$1,530
1,790
1,970
2,940
$8,230
$29,470
15,186
$14,284
$22,514
$1,570
2,820
180
$4,570
$4,564
$9,134
$9,960
3,420
$13,380
$22,514
Last year
$1,000
1,190
1,840
2,820
$6,850
$28,100
13,080
$15,020
$21,870
$1,510
2,160
320
$3,990
$5,140
$9,130
$9,960
2,780
(Click on the icon here in order to copy the contents of the data table below into
a spreadsheet.)
$12,740
$21,870
$2,106
2,680
368
1,826
21%
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