Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $190,000 and has a 5-year MACRS recovery period has gathered the following data relative to the current year's operations: Accruals Current assets Interest expense Sales revenue Inventory Total costs before depreciation, interest and taxes Tax rate on ordinary income $15,900 117,000 15,100 400,000 69,200 284,000 40% a Use the relevant data to determine the onerating cash flow for the current vear a. Complete the following table to determine the operating cash flow (OCF): (Round to the nearest dollar.) brai Operating Cash Flow Sales revenue $ ulat Less: Total costs before depreciation, interest, and taxes urce Enter any number in the edit fields and then continue to the next question. on Tools > This course introduction to Finance (FIN-101-D2 Distance Spring 2021 is based on Zutter/Smart Princinles of Managerial sinance Raif Se e here to search OBI period 5 has gathered the following data relative to the current year's operations: Accruals Current assets Interest expense Sales revenue Inventory Total costs before depreciation, interest and taxes Tax rate on ordinary income $15,900 117,000 15,100 400,000 69,200 284,000 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. 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 Enter any number in the edit fields and then continue to the next question. i More Info (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) 10 years Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year* Recovery year 3 years 5 years 7 years 1 33% 20% 14% 45% 32% 25% 15% 19% 18% 7% 12% 12% 12% 9% 5% 9% 7 9% 8 4% 9 NO ODOS 10% 18% 14% 12% 9% 8% 7% 6% 6% 602 10 Print Done This course (Introduction to Finance (SIN-101-D02 Distance Spring 2021 is hased an Zitted/Smart: Princinles of Managerial Finance Brief Se More Info X sr JJ 70 ZU 70 1770 el TUTU be hu L be 2 45% 32% 25% 18% 3 15% 19% 18% 14% 4 7% 12% 12% 12% 5 12% 9% 9% 6 5% 9% 8% 9% 7% 8 4% 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% *These percentages have been rounded to the nearest whole percent to simplify calculations while retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention C enu 1 be Print Done Thic cour