Solution-Determine the operating cash flow for the current

Determine the operating cash flow for the current year

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Reference no: EM133045620

Question - Depreciation and accounting cash flow A firm in the third year of depreciating its only asset, which originally cost $186,000 and has a 5-year MACRS recovery period, has gathered the following data relative to the current year's operations:

Accruals $14,300

Current assets 116,000

Interest expenses 15,900

Sales revenue 412,000

Inventory 70,900

Total cost before depreciation, Interest and taxes 293,000

Tax rate on ordinary income 21%

Required -

a. Use the relevant date to determine the operating cash flow for the current year.

b. Explain the impact of deprecation, as well as any other noncash charges, has on a firm's cash flow.

c. Complete the following table to determine the operating cash flow (OCF).

Reference no: EM133045620

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Determine the operating cash flow for the current year

Reference no: EM133045620

Reference no: EM133045620

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