The owner of a bicycle repair shop forecasts revenues of $168,000 a year. Variable costs will...

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The owner of a bicycle repair shop forecasts revenues of $168,000 a year. Variable costs will be $52,000, and rental costs for the shop are $32,000 a year. Depreciation on the repair tools will be $12,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. INCOME STATEMENT Revenue $ 168,000 Rental costs (32,000) Variable costs (52,000) Depreciation (12,000) Pretax profit 72,000 Taxes 21,600 Net income $ 50,400 b. Calculate the operating cash flow for the repair shop using the three methods given below: i. Dollars in minus dollars out. ii. Adjusted accounting profits. iii. Add back depreciation tax shield. Methods of Calculation i. Dollars in Minus Dollars Out ii. Adjusted Accounting profits ili. Add back depreciation tax shield Operating Cash Flow $ 50,400 The owner of a bicycle repair shop forecasts revenues of $168,000 a year. Variable costs will be $52,000, and rental costs for the shop are $32,000 a year. Depreciation on the repair tools will be $12,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%. INCOME STATEMENT Revenue $ 168,000 Rental costs (32,000) Variable costs (52,000) Depreciation (12,000) Pretax profit 72,000 Taxes 21,600 Net income $ 50,400 b. Calculate the operating cash flow for the repair shop using the three methods given below: i. Dollars in minus dollars out. ii. Adjusted accounting profits. iii. Add back depreciation tax shield. Methods of Calculation i. Dollars in Minus Dollars Out ii. Adjusted Accounting profits ili. Add back depreciation tax shield Operating Cash Flow $ 50,400