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The owner of a bicycle repair shop forecasts revenues of $220,000 a year. Variable costs will be $65,000, and rental costs for the shop are
The owner of a bicycle repair shop forecasts revenues of $220,000 a year. Variable costs will be $65,000, and rental costs for the shop are $45,000 a year. Depreciation on the repair tools will be $25,000. The tax rate is 35%. a. Calculate operating cash flow for the year by using all three methods: (a) adjusted accounting profits; (b) cash inflow/cash outflow analysis, and (c) the depreciation tax shield approach. 50 points Method Operating Cash Flow Print Adjusted accounting profits Cash inflow/cash outflow analysis Depreciation tax shield approach References b. Are the above answers equal? Yes
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