Business, 05.05.2020 08:00 Nateycorn95701

The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57,000, and rental costs for the shop are $37,000 a year. Depreciation on the repair tools will be $17,000. The tax rate is 40%. Calculate operating cash flow for the year by using all three methods: (a) adjusted accounting profits; (b) cash inflow/cash outflow; (c) the depreciation tax shield approach. a) 63,200 b) 63,200 c) 63,200 a) 56,400 b) 56,400 c) 56,400 a) 53,200 b) 53,200 c) 53,200 a) 73,400 b) 73,400 c) 73,400

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The owner of a bicycle repair shop forecasts revenues of $188,000 a year. Variable costs will be $57...

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