Wk 3 - Apply: Wk 3 Quiz [due Day 7] Saved Help Save & Exit Submit The owner of a bicycle repair shop forecasts revenues of $200,000 a year Variable costs will be $60,000, and rental costs for the 11 shop are $40,000 a year. Depreciation on the repair tools will be $20,000. a. Prepare an income statement for the shop based on these estimates. The tax rate Is 20% INCOME STATEMENT 2 points 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. II. Add back depreciation tax shield. Methods of Calculation Operating Cash Flow 1. Dollars In Minus Dollars Out 1. Adjusted Accounting profits