The owner of a bicycle repair shop forecasts revenues of $232,000 a year. Variable costs will be $68,000, and rental costs for the shop are $48,000 a year. Depreciation on the repair tools will be $28,000.
a. Prepare an 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.
The owner of a bicycle repair shop forecasts revenues of $232,000 a year. Variable costs will...
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%. 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....
The owner of a bicycle repair shop forecasts revenues of $172,000 a year. Variable costs will be $53,000, and rental costs for the shop are $33,000 a year. Depreciation on the repair tools will be $13,000. a. Prepare an 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....
The owner of a bicycle repair shop forecasts revenues of $184,000 a year. Variable costs will be $56,000, and rental costs for the shop are $36,000 a year. Depreciation on the repair tools will be $16,000. The tax rate is 35%. a. Calculate operating cash flow for the year by using all three methods: (a) adjusted accounting profits; (b) cash inflow/cash outflow analysis; and (c) the depreciation tax shield approach. Method Operating Cash Flow Adjusted accounting profits $ Cash inflow/cash...
The owner of a bicycle repair shop forecasts revenues of $200.000 a year. Variable costs will be $60,000, and rental costs for the shop are $40,000 a year. Depreciation on the repair tools will be $20,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20% INCOME STATEMENT points Skipped
The owner of a bicycle repair shop forecasts revenues of $228,000 a year. Variable costs will be $67,000, and rental costs for the shop are $47,000 a year. Depreciation on the repair tools will be $27,000. a. Prepare an income statement for the shop based on these estimates. The tax rate is 20%.
Robert's Repair Shop has a monthly target profit of $21,000. Variable costs are 40% of sales, and monthly fixed costs are $27,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income...
A five-year project is expected to generate annual revenues of $ 159,000, variable costs of $72,500, and fixed costs of $15,000. The annual depreciation is $19,500 and the tax rate is 21 percent. What is the annual operating cash flow?
1) A five-year project is expected to generate annual revenues of $159,000, variable costs of $72,500, and fixed costs of $15,000. The annual depreciation is $19,500 and the tax rate is 21 percent. What is the annual operating cash flow? 2) Your local athletic center is planning a $1.2 million expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $745,000 in additional annual sales....
A project is expected to generate annual revenues of $127,300, with variable costs of $78,400, and fixed costs of $18,900. The annual depreciation is $4,450 and the tax rate is 35 percent. What is the annual operating cash flow?
4, A proposed new investment has projected sale of $825,000. Variable costs are 55% percent of sales, and fixed costs are $200,000. Depreciation is $60,000, and the interest payment is $40,000. Prepare a pro forma income statement assuming a tax rate of 27%, what is the project after-tax operating income? What is the project operating cash flow?