The owner of a bicycle repair shop forecasts revenues of $$236,000$ a year. Variable costs will be $$69,000,$ and rental costs for the shop are $$49,000$ a year. Depreciation on the repair tools will be $$29,000.$

Prepare an income statement for the shop based on these estimates. The tax rate is $20\%.$

Calculate the operating cash flow for the repair shop using the three methods given below:

Dollars in minus dollars out.

Adjusted accounting profits.

Add back depreciation tax shield.