The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variab

Question

The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. Prepare an income statement for the shop based on these estimates. The tax rate is 35%. (Input all amounts as positive values.)

The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $50,000, and rental costs for the shop are $30,000 a year. Depreciation on the repair tools will be $10,000. Prepare an income statement for the shop based on these estimates. The tax rate is 35%. (Input all amounts as positive values.)

Explanation / Answer

Revenue 160,000 rental cost -30000 variable cost -50000 Depreciation -10000 Pretax profit 70,000 Taxes 35% -24500 Net Income 45,500

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.