User Account

All Pages

Prepare an income statement for the shop

Assignment Help Accounting Basics
Reference no: EM133013797

Question - The owner of a bicycle repair shop forecasts revenues of $180,000 a year. Variable costs will be $55,000, and rental costs for the shop are $35,000 a year. Depreciation on the repair tools will be $15,000.

Required -

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.

-Adjusted accounting profits.

-Add back depreciation tax shield.

Reference no: EM133013797

Questions Cloud

Types of technology and storage options : New England North Hospital utilizes different data entry systems. Each of these systems is used to collect and store patient data.
Compare the political affiliation of trade union movement : Case study The nature and scope of the Trades Union Bill removes any doubt there may have been surrounding the government's objectives. This is to reduce Brita
Prepare NuFloor manufacturing cost budget : The managers at NuFloor are trying to develop budgets for the upcoming quarter. Prepare NuFloor manufacturing cost budget
What is the marginal costing net profit for the year : Sales during the year were 15,000 hats from a production volume of 20,000. What is the marginal costing net profit for the year
Prepare an income statement for the shop : The owner of a bicycle repair shop forecasts revenues of $180,000 a year. Prepare an income statement for the shop
What is the maximum amount of cost : Assuming bonus depreciation is used, a half-year convention, and the expensing election is not made, what is the maximum amount of cost
What is the basis of Ruth stock in RBG Corporation : The land had a $40,000 mortgage which was assumed by the corporation. What is the basis of Ruth stock in RBG Corporation
Discuss the environmental and sustainability factors : Discuss the environmental and sustainability factors which can impact on and influence the material choices for a construction project.
Make the journal entry to record the first interest payment : Make the journal entry to record the first interest payment and amortization of bond premium using the effective interest method

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd