aleulating Cash Flews. The onner of a bicycle repair sop forecasts revasues of Sls0,000 a pear. Variable costs will be S50,000, and utal onsts for the shop are SJ0.000 a yenr. Depreciation ce the repoir tools will be $10.000. Prepare aa income stanement for the shop based oa these ostinatas The tax rate is 20% Now calenlate the operating ca thw for the repair sle ising al thet wethoks suggeiel in the chupter All three appenache dunll se in the same value fie und hs. LDullars n dellars o. . Adusted acconstins profits. i Add hak demeciatie thield

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 16E
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Caleulating Canh Flon. The owmar of a bicyele ropair shop forecasts revanues of $ ls0,000 a year. Variable costs will be $50.000. and
rental onsts for the shop are SJ0.000 a year. Depreciation oe the repair tools will be S10.000.
a. Propare an income stanement for the shop based oa these estianatas The tax rate is 20%.
h. Naw calenlate the operating cash ilne for the repair shayp nsing al thet wethocs suggeiel in the chapier. All three apprmaches
lulil seuali in the same value fie uhi he
L. Dollars nds dullars out.
. Adiusted acconating profits.
ii. Add back depreciation tax shield
Transcribed Image Text:Caleulating Canh Flon. The owmar of a bicyele ropair shop forecasts revanues of $ ls0,000 a year. Variable costs will be $50.000. and rental onsts for the shop are SJ0.000 a year. Depreciation oe the repair tools will be S10.000. a. Propare an income stanement for the shop based oa these estianatas The tax rate is 20%. h. Naw calenlate the operating cash ilne for the repair shayp nsing al thet wethocs suggeiel in the chapier. All three apprmaches lulil seuali in the same value fie uhi he L. Dollars nds dullars out. . Adiusted acconating profits. ii. Add back depreciation tax shield
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