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Calculate the operating cash flow for the repair shop

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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.

Problem a. Calculate the operating cash flow for the repair shop using the three methods given below:

Now calculate the operating cash flow.

  1. Dollars in minus dollars out.
  2. Adjusted accounting profits.
  3. Add back depreciation tax shield.

Reference no: EM133012114

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