Depreciation and accounting cash flow: 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: 1) a. Use relevant data to determine the operating cash flow (see Equation 4.2) for the current year. b. Explain the impact that depreciation, as well as any other non-cash charges, has on a firm s cash flows. Accruals = $15,000, Current assets = 120,000, Interest expense = 15,000, Sales revenue = 400,000, Inventory = 70,000, Total cost before depreciation, interest, and taxes = 290,000, Tax rate on ordinary income = 21%.