Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $177,000 and has a 5-year MACRS recovery period has gathered the following data relative to the current year's operations: Accruals $15,100 Current assets 112,000 Interest expense 14,000 Sales revenue 408,000 Inventor 69 ann a. Complete the following table to determine the operating cash flow (OCF): (Round to the nearest dollar.) $ Operating Cash Flow Sales revenue Less: Total costs before depreciation, interest, and taxes Interest expense 14,000 Sales revenue 408,000 Inventory 69,900 Total costs before depreciation, interest and taxes 287,000 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. Depreciation expense Earnings before interest and taxes Less: Taxes at 40% Net operating profit after taxes (NOPAT) s Less: Taxes at 40% Net operating profit after taxes (NOPAT) Plus: Depreciation Operating Cash Flow (OCF) $