The owner of a bicycle repair shop forecasts revenues of $168,000 a year. Variable costs will be $52,000, and rental costs for the shop are $32,000 a year. Depreciation on the repair tools will be $12,000. Prepare an income statement for the shop based on these estimates. The tax rate is 30%.

INCOME STATEMENT (Options for column A are: DEPRECIATION, PRETAX PROFIT, RENTAL COSTS, REVENUE, Choose 1 only) (Column B is for imputing the numbers)

Column A Column B

1. 1.

2. 2.

3. 3.

4. 4.

5. 5.

6. 6.

7. 7.