P Gradebook M Question 11 - Wk 3 - Apply Wk S Quiz (due Day 7] . Connect 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 shop are $40,000 a year Depreciation on the repair tools will be $20,000. 11 a. Prepare an income statement for the shop based on these estimates. The tax rate Is 20%. INCOME STATEMENT 2 Revenue $ 200,000 points Variable costs 60,000 Skipped Pretax profil 140 000 10 000 (40,000) $ (40.000) b. Calculate the operating cash flow for the repair shop using the three methods given below: Now calculate the operating cash flow. L Dollars In minus dollars out Il. Adjusted accounting profits. Il. Add back depreciation tax shield. Methods of Calculation Operating Cash Flow 1 Dollars In Minus Dollars Out 1. Adjusted Accounting profits . After tax Operating Cash flow Mc