Depreciation and accounting cash flow: A firm in the third year of depreciating its only asset, which originally cost $180,000 and has a 5-year MACRS recovery period, has gathered the following data relative to the current year s operations:
1) a. Use relevant data to determine the operationg cash flow (see Equation 4.2) for the current year.
b. Explain the impact that depreciation, as well as any other noncash charges, has on a firm s cash flows.