The owner of a bicycle repair shop forecasts revenues of 216000 a year.

The owner of a bicycle repair shop forecasts revenues of 216000 a year. Variables cost will be $64000 rental cost for the shop are 44,00 a year . Depreciation on the repair tools will be $24000.

A. Prepare an income statement for the shop base on the estimate. Tax rate is 20%

B. Calculate the operating cash flow for the repair shop using the three methods given below Dollars in minus dollars out Adjusted accounting profit Add back depreciation tax shield

Expert Solution

jeff jeffy answered 2 years ago

The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will...

The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. Dollars in minus dollars out. Adjusted accounting profits. Add back depreciation tax shield. b. Calculate the operating cash flow for the repair shop using the three methods...

The owner of a bicycle repair shop forecasts revenues of $180,000 a year. Variable costs will...

The owner of a bicycle repair shop forecasts revenues of $180,000 a year. Variable costs will be $55,000 and rental costs for the shop are $35000 a year. Depreciation on the repair tools will be $15000 a. Prepare an income statement for the shop based on these estimates. The tax rate is 20% b. Calculate the Operating cash flow for the repair shop using three methods given below dollars in minus dollars out adjusted accounting profits add back depreciation tax...

The owner of a bicycle repair shop forecasts revenues of $200,000 a year. Variable costs will...

The owner of a bicycle repair shop forecasts revenues of $200,000 a year. Variable costs will be $60,000, and rental costs for the shop are $40,000 a year. Depreciation on the repair tools will be $20,000. b. Calculate the operating cash flow for the repair shop using the three methods given below: Now calculate the operating cash flow. Dollars in minus dollars out. Adjusted accounting profits. Add back depreciation tax shield.

The owner of a bicycle repair shop forecasts revenues of $224,000 a year. Variable costs will...

The owner of a bicycle repair shop forecasts revenues of $224,000 a year. Variable costs will be $66,000, and rental costs for the shop are $46,000 a year. Depreciation on the repair tools will be $26,000. Prepare an income statement for the shop based on these estimates. The tax rate is 40%. Calculate operating cash flow for the year by using all three methods: (a) Dollars in minus dollars out; (b) Adjusted accounting profits; and (c) Add back depreciation tax...

Your friend owns a bicycle shop that derives most of its revenues from repair and maintenance...

Your friend owns a bicycle shop that derives most of its revenues from repair and maintenance services. Her services range from simple tune-ups to complex rebuilding of racing and mountain bikes. She has four employees who work at the shop and she rents the building that the business operates out of. Respond to the following questions: 1.) List two specific major costs of operations that would be considered to be direct costs, and explain your reasoning. 2.) The shop served...

Owner of an auto repair shop hires Contractor to remodel his shop but does not mention...

Owner of an auto repair shop hires Contractor to remodel his shop but does not mention that two days after the scheduled completion date, Owner is to receive five small US Army personnel carrier trucks for service, with a three-week deadline to finish the job and turn the trucks over to the army. The contract between Owner and the army has a liquidated damages clause calling for $300 a day for every day trucks are not operable after the deadline....

Tim’s Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has...

Tim’s Bicycle Shop sells 21-speed bicycles. For purposes of a cost-volume-profit analysis, the shop owner has divided sales into two categories, as follows: Product Type Sales Price Invoice Cost Sales Commission High-quality $ 1,150 $ 490 $ 70 Medium-quality 570 270 60 Three-quarters of the shop’s sales are medium-quality bikes. The shop’s annual fixed expenses are $196,500. (In the following requirements, ignore income taxes.) Required: Compute the unit contribution margin for each product type. What is the shop’s sales mix?...

12. Big Shark, a bicycle shop, promises to repair cycles within 3 days. A 96% confidence...

12. Big Shark, a bicycle shop, promises to repair cycles within 3 days. A 96% confidence interval for the proportion of all cycles that are repaired in time is 88% ± 6%. What does this mean? a. Between 82% and 94% of all cycles are repaired in time. b. Between 82% and 94% of all cycles are repaired in time, 96% of the times. c. 96% of all random samples (of same size) will show that between 82% and 94%...

SHU Bicycle Shop sells Mountain bikes, Dirt bikes and Leisure bikes. D. Shim, owner, aggregated the...

SHU Bicycle Shop sells Mountain bikes, Dirt bikes and Leisure bikes. D. Shim, owner, aggregated the following information with help of SHU Accounting Consulting Group: Product sales price purchase cost Mountain bike $1,500 $900 Dirt Bike $1,800 $800 Leisure Bike $800 $600 The shop anticipates selling 600 Mountain bikes, 250 Dirt bikes and 150 Leisure bikes. Monthly common fixed costs which can’t be separated to any product are $1,000,000 and income tax rate is 40%. Required) 1. What is unit...

Python Programming Question Bicycle shop. A bicycle shop sells bikes and helmets. Some people already own...

Python Programming Question Bicycle shop. A bicycle shop sells bikes and helmets. Some people already own helmets, so on average the shop sells three helmets for every five bicycles. Helmets cost $50 and bikes cost $250. Write a program that prompts for the number of bikes that the shop expects to sell over the next month and outputs the total amount of expected revenue. You should not be using eval() at all; use int() or float() instead when called for.

Question