the owner of a bicycle repair shop forecasts revenues of $212,000 a year. Variable cost will be $63,000, and rental costs for the shop are $43,000 a year. Depreciation on the repair tools will be $23,000.

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: Now calculate the operating cash flow.

i. dollars in minus dollars out

ii. adjusted accounting profits

iii. after tax operating cash flow