5. Operating cash flow (S6.1) A company is considering the purchase of a universal grinding machine. The following table sets out a forecast of the annual accounting profit:

Revenues $ 400,000 Costsa 280,000 Pretax profit 120,000 Tax at 25% 30,000 After-tax profit $ 90,000 a Note: costs include depreciation of $80,000.

Calculate the operating cash flow using the three methods set out in Eqs. (6.3A), (6.3B), and

(6.3C).