The owner of a bicycle repair shop forecasts revenues of $228,000 a year. Variable costs will...
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%.
Homework Answers
Ans $ 69600
| SALES | 228000.00 | |
| LESS | VARIABLE COST | 67000.00 |
| LESS | FIXED COST | 47000.00 |
| LESS | DEPRECIATION | 27000.00 |
| INCOME BEFORE TAX | 87000.00 | |
| LESS | TAX @ 20% | 17400.00 |
| NET INCOME | 69600.00 |
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