Finding operating and free cash flows Consider the balance sheets and selected data from the income statement of Keith Corporation that followa. 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.) AssetsCashMarketable securitiesAccounts receivableInventoriesTotal current assetsGross fixed assetsLess: Accumulated depreciationNet fixed assetsTotal assetsLiabilities and Stockholders' EquityAccounts payableNotes payableAccrualsKeith Corporation Balance SheetsTotal current liabilitiesLong-term debtTotal liabilitiesCommon stockRetained earningsTotal stockholders' equityTotal liabilities and stockholders' equityIncome Statement Data (This year)Depreciation expenseEarnings before interest and taxes (EBIT)Interest expenseDecember 31Net profits after taxesTax rateThis year$1,5301,7901,9702,940$8,230$29,47015,186$14,284$22,514$1,5702,820180$4,570$4,564$9,134$9,9603,420$13,380$22,514Last year$1,0001,1901,8402,820$6,850$28,10013,080$15,020$21,870$1,5102,160320$3,990$5,140$9,130$9,9602,780(Click on the icon here in order to copy the contents of the data table below intoa spreadsheet.)$12,740$21,870$2,1062,6803681,82621%

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Answered: Finding operating and free cash flows…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter16: Statement Of Cash Flows

Section: Chapter Questions

Problem 2TP: Use a spreadsheet and the following financial information from Mineola Companys financial statements...

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Use a spreadsheet and the following financial information from Mineola Companys financial statements to build a template that automatically calculates the net operating cash flow. It should be suitable for use in preparing the operating section of the statement of cash flows (indirect method) for the year 2018.
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…
The operating-cash-flow-to-current-liabilities ratio is computed by dividing a firm's a net cash flow from operating activities by: A) Current liabilities at the beginning of the period B) Current liabilities at the end of the period C) Total liabilities at the middle of the period D) Average current liabilities for the period
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).
1. Determine the earnings before taxes for years 1 through 5 2. Compute the OCF for years 1 through 5 3. Compute the terminal cash flow
Quinze Seize Corp. reported the following amounts in its statement of financial position at each year-end:a. What is the net cash provided by operating activities?b. What is the net cash used in investing activities?c. What is the net cash provided by financing activities?
Base on your review of the Mc Donald’s Corporation financial statement, draw at least 4 conclusions in terms of usage of its cash flow, financing, firm’s investment, the primary use of the firms’ cash flow during the year.
Calculating Free Cash Flow Apex Company prepared the statement of cash flows for the current year that is shown below: Required: Compute Apex Company’s free cash flow for the current year.
The ________ is a measure of a company's ability to pay its current liabilities from cash and cash equivalents. A. cash conversion cycle B. cash ratio C. gross profit D. debt equity ratio
Match the words to the definitions. Solvency Accounts Receivable Balance Sheet Noncurrent Assets Income Statement Retained Earnings Noncurrent Liabilities. Liquidity Current Assets Cash Flow Statement ✓ [Choose ] A forecast of the amount and timing of future cash inflows and outflows over some period of time. A summary of the revenues and expenses of a business over a given period of time. When net worth is greater than zero, or assets are greater than liabilities on the balance sheet. The ability to meet the day-to-day cash needs of the firm. Profits that are not paid out in dividends but are reinvested in the firm itself. Summarizes a firm's financial position at a given point in time and lists the firm's assets, liabilities, and net worth. Debts that others owe the business, usually arising from previous credit sales. Something the firms owns or uses that will not turn into cash within the next accounting period. Either cash or an items that will become cash in the next accounting…
Which financial statement would show how well a company performed over the past year?a. Balance sheetb. Income statementc. Statement of cash flowsd. Statement of retained earnings
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