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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

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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 $45,000 a year. Depreciation on the repair tools will be $25,000. The tax rate is 35%. Calculate operating cash flow for the year by using all three methods adjusted accounting profits, cash inflow/cash outflow analysis, and the depreciation tax shield approach Method Adjusted accounting profits Cash inflow/cash outflow analysis Depreciation tax shield approach Are the above answers equal? Yes No

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