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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

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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%. b. Calculate the operating cash flow for the repair shop using the three methods given below: i. Dollars in minus dollars out. ii. Adjusted accounting profits. iii. Add back depreciation tax shield. b. Calculate the operating cash flow for the repair shop using the three methods given below: i. Dollars in minus dollars out. ii. Adjusted accounting profits. iii. Add back depreciation tax shield

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