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:
a. Use relevant data to determine the operationg 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.