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ion list Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $ 1 9 0

ion list
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 (i), has gathered the following data relative to the current year's operations:
stion 1
Accruals
Current assets
Interest expense
Sales revenue
Inventory
Total costs before depreciation, interest and taxes
Tax rate on ordinary income
a. Use the relevant data to determine the operating cash flow for the current vear.
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
Depreciation expense
Earnings before interest and taxes
Less: Taxes at 40%
Net operating profit after taxes (NOPAT)
Plus: Depreciation
Operating Cash Flow (OCF)
$14,400
127,000
16,000
407,000
69,300
288,000
40%
stion 3
a. Use the relevant data to determine the operating cash flow for the current vear
$
$
$
$
More info
(Click on the icon here = in order to copy the contents of the data table below into a spreadsheet.)
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes
\table[[,Percentage by recovery year],[Recovery year,3 years,5 years,7 years,10 years],[1,33%,20%,14%,10%
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