The owner of a bicycle repair shop forecasts revenues of $216000 a year. Variable costs will be $64,000 and rental costs for the shop are $44000 a year. Depreciation on the repair tools will be $24000 1. Prepare an income statement for the shop based on these estimates. The tax rate is 20%   Calculate the operating cash flow for the repair shop using the 3 methods given below. Now calculate the operating cash flow 1. Dollars in Minus Dollars out 2. Adjusted accounting profit 3. After-tax operating cash flow

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.