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.

Accruals                $15,000

Current assets     $20,000

Interest expense $15,000

Sales revenue       400,000

Inventory                 70,000

Total costs before depreciation, interest, and taxes  290,000

Tax rate on ordinary income  40%

a. Use the relevant data to determine the operating cash flow (see Equations 4.2 and 4.3) for the current year.

b. Explain the impact that depreciation, as well as any other noncash charges, has on a firms cash flows.

Please provide your own work. Thanks.