Fast pls solve this question correctly in 5 min pls I will give u like for sureSvtrik Finding operating and free cash flows Consider the balance sheets and sea. 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 depreciation.Net fixed assetsTotal assetsLiabilities and Stockholders' EquityAccounts payableNotes payableAccrualsTotal current liabilitiesLong-term debtTotal liabilitiesCommon stockRetained earningsThis year$1,4601,7701.9702,940$8,140$29,52015.288$14,232$22,372$1,6302,820190$4,640$4,362$9,002$10,0203,350$13,370$22,372Last year$1,0301,1901,8502,850$6,920$28,07013,150$14,920$21,840$1,5102,160350$4,020$5,030$9,050$10,0202,770$12,790$21,840Total stockholders' equityTotal liabilities and stockholders' equity(Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)Income Statement Data (This year)Depreciation expenseEarnings before interest and taxes (EBIT)Interest expenseNet profits after taxesTax rate$2,1382,7203731,85421%

Free cash flows are important from point of valuation of firm and projects and they can be obtained…

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EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 10P

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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
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
An analyst has calculated a ratio using as the numerator the sum of operating cash fl ow, interest, and taxes and as the denominator the amount of interest. What is this ratio, what does it measure, and what does it indicate? C . Th is ratio is an operating profi tability ratio, measuring the operating cash fl ow generated accounting for taxes and interest and indicating a company’s liquidity.
A firm's operating cash flow (OCF) is defined as ________. a. EBIT plus depreciation b. gross profit minus operating expenses c. gross profit minus depreciation d. EBIT times one minus the tax rate plus depreciation
An analyst has calculated a ratio using as the numerator the sum of operating cash fl ow, interest, and taxes and as the denominator the amount of interest. What is this ratio, what does it measure, and what does it indicate? A . Th is ratio is an interest coverage ratio, measuring a company’s ability to meet its interest obligations and indicating a company’s solvency.
1. What is the cash flow statement using the indirect method? 2. What is the free cash flow for this 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…
If a company reports positive net income for the year, can it also show a net cash outflow from operating activities? Explain.
In a construction cash flow statement which of the following workingcapital account represents a source of cash of the firm? A. Decrease in Accounts Receivable.B. Increase in Accounts Receivable.C. Decrease in Accounts Payable.D. Decrease in accrued Taxes Payable.
An analyst has calculated a ratio using as the numerator the sum of operating cash fl ow, interest, and taxes and as the denominator the amount of interest. What is this ratio, what does it measure, and what does it indication? B . Th is ratio is an eff ective tax ratio, measuring the amount of a company’s operating cash fl ow used for taxes and indicating a company’s effi ciency in tax management.

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