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Business, 26.02.2020 05:46 caro11377oxq5d0

Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $ 180 comma 000 and has a 5-year MACRS recovery period LOADING..., has gathered the following data relative to the current year's operations: Accruals $ 15 comma 000 Current assets 120 comma 000 Interest expense 15 comma 000 Sales revenue 400 comma 000 Inventory 70 comma 000 Total costs before depreciation, interest and taxes 290 comma 000 Tax rate on ordinary income 21 %

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.

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Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which...
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