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Could you please answer the questions in the attachment I have Provided. Thank you. The owner of e Olcycle repolr shop forecasts revenues of S180.OOO

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Could you please answer the questions in the attachment I have Provided. Thank you.

image text in transcribed

The owner of e Olcycle repolr shop forecasts revenues of S180.OOO a year. Varleble costs wlll be S55.OOO, end rental costs for the shop ere 335.000 a year. Depreclatlon on the repolr tools wlll be S15,OOO. The tax rate Is 30%. a. Calculate operatlng cash flow for the year by uslng all three methods: (a) adjusted accountng profits: (b) cash Inflow/cash outflow analysts: and (c) the depreclatlon tax shleld approach. Method Adjusted accountlng profits Cash Inflow/cash outflow analysls Deprec'aon tax shield approach b. Are the above answers equal? O No Ooeratlng Cosh Flow

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