Calculate the firms operating cash flow

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Reference no: EM131965659

Keith Corporation Balance Sheets


December 31

Assets

2015

2014

Cash

$ 1,500

$ 1,000

Marketable securities

1,800

1,200

Accounts receivable

2,000

1,800

Inventories

  2,900

  2,800

   Total current assets

$ 8,200

$ 6,800

Gross fixed assets

$29,500

$28,100

Less: Accumulated depreciation

14,700

13,100

   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

2,800

2,200

Accruals

    200

    300

   Total current liabilities

$ 4,600

$ 4,000

Long-term debt

  5,000

  5,000

   Total liabilities

$ 9,600

$ 9,000

Common stock

$10,000

$10,000

Retained earnings

  3,400

  2,800

   Total stockholders' equity

$13,400

$12,800

   Total liabilities and stockholders' equity

$23,000

$21,800




Keith Corporation Income Statement Data (2015)

Depreciation expense

$1,600

Earnings before interest and taxes (EBIT)

2,700

Interest expense

367

Net profits after taxes

1,400

Tax rate

40%





Calculate the firm's operating cash flow (OCF) for the year ended December 31, 2015 Please show formulas

Reference no: EM131965659

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