( Question 1) . We 3 - Apply Wa S Quis [ dire Day 1) . Correct Ww 3 - Apply: Wk 3 Quiz [due Day 7) 0 Saved Help Save & Full Submit 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. 11 a. Prepare on income statement for the shop based on these estimates. The tax rate Is 20% INCOME STATEMENT Revenue 200.000 Variable costs Shipped Pretax profit 140 000 40 0DO (40,000) (40,000) b. Calculate the operating cash flow for the repair shop using the three methods given below. Now calculate the operating cash flow. L Dollars in minus dollars out. il. Adjusted accounting profits. Il. Add back depreciation tax shield Methods of Calculation Operating Cash Flow Dollars in Minus Dollars Out Adjusted Accounting profits After tax Onarating Cash flow Mc