Solution-Calculate the operating cash flow for the repair

Calculate the operating cash flow for the repair shop

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Reference no: EM132524116

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. income statement for the shop based on these estimates. The tax rate is 20%.

b. Calculate the operating cash flow for the repair shop using the three methods given below:

Now calculate the operating cash flow.

-Dollars in minus dollars out.

-Adjusted accounting profits.

-Add back depreciation tax shield.

Reference no: EM132524116

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Calculate the operating cash flow for the repair shop

Reference no: EM132524116

Reference no: EM132524116

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