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 shield

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jeff jeffy answered 1 year ago

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