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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

$\backslash$table$[[,$Percentage by recovery year$],[$Recovery year,$3$ years,$5$ years,$7$ years,$10$ years$],[1,33\%,20\%,14\%,10\%$