?A firm in the third year of depreciating its only? asset, which originally cost $ 180,000 and has a? 5-year MACRS recovery period?, has gathered the following data relative to the current? year's operations:

Accruals

$ 15,000

Current assets	120 ,000
Interest expense	15,000
Sales revenue	400,000
Inventory	70,000
Total costs before? depreciation, interest and taxes	290,000
Tax rate on ordinary income	40 %

a. Use the relevant data to determine the operating cash flow for the current year.

b. Explain the impact that? depreciation, as well as any other noncash? charges, has on a? firm's cash flows.