Depreciation and accounting cash flow Atom in the third year of pring its only asset, which original cost $1.000 and has a yw MACRS recovery period agered the blowing dave to the cu year's operations Accounts $16 Current 117 000 Interest expense 15.700 Sales 401 000 Inventory 20.000 Total costs before depreciation, interest and taxes 20.000 Taxate 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 changes, has on a firm's cash flows a. Complete the following table to determine the operating cash flow (OCF) (Pound to the dow) s Operating Cash Flow Sales revenue Less Total costs before depreciation Interest, andes Depreciation expense Fabiando Depreciation and accounting cash flow firm in the third year of depreciating its only asset, which originally cost $185,000 and has a 5-year year's operations Accruals $15,000 Current assets 117,000 Interest expense 15,700 Sales revenue 401,000 Inventory 70,600 Total costs before depreciation, interest and taxes 298,000 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 Sales revenue Less: Total costs before depreciation, interest, and taxes Depreciation expense Earnings before interest and taxes Less: Taxes at 40% Net operating profit after taxes (NOPAT) $ Net operating profit after taxes (NOPAT) s Plus: Depreciation Operating Cash Flow (OCF) $ b. Explain the impact that depreciation, as well as any other noncash charges, has on a firm's cash flows. (Select from the drop-down menu.) Depreciation and other noncash charges serve as a tax shield against income, annual cash flow