Question

In: Finance

Finding operating and free cash flows   Consider the balance sheets and selected data from the income...

Finding operating and free cash flows   Consider the balance sheets and selected data from the income statement of Keith Corporation that follow

LOADING...

.

a. Calculate the​ firm's net operating profit after taxes​ (NOPAT) for the year ended December​ 31,

2019

2019.

b. Calculate the​ firm's operating cash flow​ (OCF) for the year ended December​ 31,

2019

2019.

c. Calculate the​ firm's free cash flow​ (FCF) for the year ended December​ 31,

2019

2019.

d.​ Interpret, compare and contrast your cash flow estimate in parts​ (b) and​ (c).


Keith Corporation Balance Sheets

December 31

Assets

2019

2019

2018

2018

Cash

$ 1 comma 540

$1,540

$ 980

$980

Marketable securities

1 comma 830

1,830

1 comma 210

1,210

Accounts receivable

2 comma 010

2,010

1 comma 850

1,850

Inventories

2 comma 860

2,860

2 comma 780

2,780

Total current assets

$ 8 comma 240

$8,240

$ 6 comma 820

$6,820

Gross fixed assets

$ 29 comma 530

$29,530

$ 28 comma 140

$28,140

​Less: Accumulated depreciation

14 comma 700

14,700

13 comma 060

13,060

Net fixed assets

$ 14 comma 830

$14,830

$ 15 comma 080

$15,080

Total assets

$ 23 comma 070

$23,070

$ 21 comma 900

$21,900

Liabilities and​ Stockholders' Equity

Accounts payable

$ 1 comma 590

$1,590

$ 1 comma 500

$1,500

Notes payable

2 comma 840

2,840

2 comma 210

2,210

Accruals

150

150

310

310

Total current liabilities

$ 4 comma 580

$4,580

$ 4 comma 020

$4,020

​Long-term debt

$ 5 comma 130

$5,130

$ 5 comma 070

$5,070

Total liabilities

$ 9 comma 710

$9,710

$ 9 comma 090

$9,090

Common stock

$ 9 comma 970

$9,970

$ 9 comma 970

$9,970

Retained earnings

3 comma 390

3,390

2 comma 840

2,840

Total​ stockholders' equity

$ 13 comma 360

$13,360

$ 12 comma 810

$12,810

Total liabilities and​ stockholders' equity

$ 23 comma 070

$23,070

$ 21 comma 900

$21,900

Income Statement Data ​(

2019

2019​)

Depreciation expense

$ 1 comma 640

$1,640

Earnings before interest and taxes​ (EBIT)

2 comma 650

2,650

Interest expense

365

365

Net profits after taxes

1 comma 805

1,805

Tax rate

21 %

21%

Solutions

Expert Solution

jeff jeffy answered 11 months ago
Next > < Previous

Related Solutions

Finding operating and free cash flows   Consider the balance sheets and selected data from the income...
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 the year ended December​ 31, 20192019. b. Calculate the​ firm's operating cash flow​ (OCF) for the year ended December​ 31, 20192019. c. Calculate the​ firm's free cash flow​ (FCF) for the year ended December​ 31, 20192019. d.​ Interpret, compare and contrast your cash flow estimate in...
Finding operating and free cash flows   Consider the balance sheets and selected data from the income...
Finding operating and free cash flows   Consider the balance sheets and selected data from the income statement of Keith Corporation that follow Keith Corporation Balance Sheets Assets 2019 2018 Cash $1,500 $1,000 Marketable securities 1800 1200 Accounts receivable 2000 1800 Inventories 2900 2800 Total current assets $8,200 $6,800 Gross fixed assets $29,500 $28,100 Less: Accumulated depreciation 14700 13100 Net fixed assets $14,800 $15,000 Total assets $23,000 $21,800 Liabilities and Stockholders' Equity Accounts payable $1,600 $1,500 Notes payable 2800 2200 Accruals...
Consider the balance sheets and selected data from the income statement of Keith Corporation that follow...
Consider the balance sheets and selected data from the income statement of Keith Corporation that follow LOADING.... Keith Corporation Balance Sheets December 31 Assets 2019 2018 Cash $ 1,470 $ 970 Marketable securities 1, 750 1 comma 150 Accounts receivable 1 comma 970 1 comma 770 Inventories 2 comma 880 2 comma 820 Total current assets $ 8 comma 070 $ 6 comma 710 Gross fixed assets $ 29 comma 460 $ 28 comma 100 Less: Accumulated depreciation 14 comma...
Cash Flows from Operating Activities—Indirect Method Selected data (in thousands) derived from the income statement and...
Cash Flows from Operating Activities—Indirect Method Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows: Income statement data: Net income $49,340 Gain on disposal of property 1,230 Depreciation expense 11,620 Other items involving noncash expenses 1,380 Balance sheet data: Increase in accounts receivable 1,755 Decrease in inventory 1,010 Increase in prepaid expenses 595 Decrease in accounts payable 670 Decrease in accrued and other current liabilities 1,015...
Forecast the Statement of Cash Flows Following are the income statements and balance sheets of Best...
Forecast the Statement of Cash Flows Following are the income statements and balance sheets of Best Buy Co., Inc. Income Statement, Fiscal Years Ended ($ millions) 2012 Estimated Feb. 26, 2011 Revenue $53,037 $50,272 Cost of goods sold 39,672 37,611 Restructuring charges - cost of goods sold -- 24 Gross profit 13,365 12,637 Selling, general and administrative expenses 10,873 10,325 Restructuring charges -- 198 Goodwill and tradename impairment -- -- Operating income 2,492 2,114 Other income (expenses) Investment income and...
The information presented here represents selected data from the December 31, 2016, balance sheets and income...
The information presented here represents selected data from the December 31, 2016, balance sheets and income statements for the year then ended for three firms. Required: Calculate the missing amounts for each firm. Firm A Firm B Firm C Total assets, 12/31/16 $348,000 $416,000 Total liabilities, 12/31/16 64,000 164,000 Paid-in capital, 12/31/16 44,000 47,200 112,000 Retained earnings, 12/31/16 148,800 Net income for 2016 54,400 88,000 64,800 Dividends declared and paid during 2016 9,600 22,400 Retained earnings, 1/1/16 40,000 99,200
The income statement and a schedule reconciling cash flows from operating
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation.    Required:  Prepare the cash flows from operating activities section of the statement of cash flows (direct method).
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $698,500 Cost of Goods Sold $473,000 Wages Expense 94,600 Insurance Expense 8,800 Depreciation Expense 18,700 Interest Expense 9,900 Income Tax Expense 31,900        636,900 Net Income                                    $61,600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12,100 $5,500 Accounts Receivable...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at...
Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance sheets at December 31 of 2013 and 2012 are shown below: WOLFF COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $698,500 Cost of Goods Sold $473,000 Wages Expense 94,600 Insurance Expense 8,800 Depreciation Expense 18,700 Interest Expense 9,900 Income Tax Expense 31,900 636,900 Net Income $61,600 WOLFF COMPANY Balance Sheets Dec. 31, 2013 Dec. 31, 2012 Assets Cash $12,100 $5,500 Accounts Receivable...
Statement of Cash Flows (Indirect Method) The Rainbow Company's income statement and comparative balance sheets as...
Statement of Cash Flows (Indirect Method) The Rainbow Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow: RAINBOW COMPANY Income Statement For the Year Ended December 31, 2013 Sales Revenue $825,000 Dividend Income 16,500 841,500 Cost of Goods Sold $484,000 Wages and Other Operating Expenses 143,000 Depreciation Expense 42,900 Patent Amortization Expense 7,700 Interest Expense 14,300 Income Tax Expense 48,400 Loss on Sale of Equipment 5,500 Gain on Sale of Investments (11,000) 734,800...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT