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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.

$($Click on the icon here $$ in order to copy the contents of the data table below into a spreadsheet.$)$

a$.$ Complete the following table to determine the operating cash flow $($OCF$)$: $($Round to the nearest dollar.$)$

Rounded Depreciation Percentages by Recovery Year Using MACRS for

First Four Property Classes

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

$

$*$These percentages have been rounded to the nearest whole percent to simplify calculations while

retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual

unrounded percentages or directly apply double$-$declining balance $(200\%)$ depreciation using the half$-$year

convention.