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. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. Answer is complete and correct. INCOME STATEMENT Revenue S Variable costs Rental costs Depreciation Pretax profit Taxes 220,000 65,000 45,000 25,000 85,000 17,000 68,000 Net Income $ b. Calculate the operating cash flow for the repair shop using the three methods given below: Now calculate the operating cash flow. 1. Dollars in minus dollars out. ii. Adjusted accounting profits. lil. Add back depreciation tax shield. Answer is not complete. Methods of Calculation Operating Cash Flow Dollars in Minus Dollars Out Adjusted Accounting profits 1. il. 2 4 Next