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The owner of a bicycle repair shop forecasts revenues of $200.000 a year. Variable costs will...
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%.
The owner of a bicycle repair shop forecasts revenues of $168,000 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...
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 $232,000 a year. Variable costs will...
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.
Dollars in minus dollars out....
The owner of a bicycle repair shop forecasts revenues of $184,000 a year. Variable costs will...
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...
Chapter 1 Mel's Mechanical Repair Shop started the year with total assets of $60,000, total liabilities...
Chapter 1 Mel's Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of $40,000, and retained earnings of $18,000. During the year, the business recorded $100,000 in auto repair revenues, $70,000 in expenses, and the company paid dividends of $15,000. NI R-E 1. The net income reported by Mel's Mechanical Repair Shop for the year was 2. Mel's balance of stockholders' equity at the start of the year was 3. Mel's balance of retained earnings at...
Gita is an auto mechanic and runs a small repair shop. She hires one mechanic at...
Gita is an auto mechanic and runs a small repair shop. She hires one mechanic at $20,000 per year, pays a monthly rent of $5,000 towards the lease of the premises where her repair shop is located, and spends $20,000 per year on materials needed for repairing cars and trucks. She has invested $40,000 of her own savings in heavy equipment (air and strut compressors, brake lathes, heavy-duty lifts etc.) that could earn her $4,000 per year if invested elsewhere....
4, A proposed new investment has projected sale of $825,000. Variable costs are 55% percent of...
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?
Preparation of financial statements Using the Adjusted Trial Balance shown below, prepare the company’s: (a) ...
Preparation of financial statements Using the Adjusted Trial Balance shown below, prepare the company’s: (a) Income Statement (b) Statement of Retained Earnings (c) Balance Sheet by completing the tables provided on the following pages. Repair Shop Adjusted Trial Balance Dec. 31, 2016 Debit Credit Cash $ 30,000 Supplies 2,000 Accounts Receivable 70,000 Equipment 30,000 Accumulated Depreciation on Equipment $ 10,000 Accounts Payable 20,000 Notes Payable 5,000 Income Taxes Payable 20,000 Capital Stock 30,000 Retained Earnings (as of Jan 1, 2016)...
The startup costs of a project is $500,000. For years 1 through 5, the annual revenues...
The startup costs of a project is $500,000. For years 1 through 5, the annual revenues are expected to be $210,000, and the annual costs are expected to be $110,000 per year. The firm faces a tax rate of 40%, and will depreciate the entire startup cost over years 1 through 4 in a straight line method. Based on the above information, what is the depreciation tax shield in year 2? A. $40,000 B. $125,000 C. $60,000 D. $50,000
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.
Dollars in minus dollars out....
Chapter 1 Mel's Mechanical Repair Shop started the year with total assets of $60,000, total liabilities of $40,000, and retained earnings of $18,000. During the year, the business recorded $100,000 in auto repair revenues, $70,000 in expenses, and the company paid dividends of $15,000. NI R-E 1. The net income reported by Mel's Mechanical Repair Shop for the year was 2. Mel's balance of stockholders' equity at the start of the year was 3. Mel's balance of retained earnings at...
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?
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