Depreciation and accounting cash ow Arm in the third year of depreciating its only asset. which originally cost $174,000 and has a 5-year MACRS recovery period 0 , has gathered the following data relative to the current year's operations: Accruals $14,000 Current assets 124,000 Interest expense 15,600 Sales revenue 420.000 Inventory 70,800 Total costs before depreciation. interest and taxes 28?,000 Tax rate on ordinary income 21% a. Use the relevant data to determine the ooeratino cash ow for the current vea r. (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) 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 10 years 1 33% 20% 14% 10% 2 45% 32% 25% 13% 3 15% 19% 18% 14% 4 7 % 12% 12% 12% 5 12% 9% 9% 6 5% 9% 3% 7 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. Operating Cash Flow Sales revenue Less: Total costs before depreciation, interest. and taxes Depreciation expense Earnings before interest and taxes Less: Taxes at 21% Net operating prot after taxes (NOPAT) Plus: Depreciation Operating Cash Flow (OCF)