The owner of a bicycle repair shop forecasts revenues of $176,000 a year. Variable costs will be $54,000, and rental costs for the shop are $34,000 a year. Depreciation on the repair tools will be $14,000. The tax rate is 40%.

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.

Method	Operating Cash Flow
Adjusted accounting profits	$
Cash inflow/cash outflow analysis
Depreciation tax shield approach

b.	Are the above answers equal?
	Yes No