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Calculating Net Incom e . The owner

Calculating Net Incom e . The owner of a bicycle repair shop forecasts revenues of $160,000 a year. Variable costs will be $45,000, and rental costs for the shop are $35,000 a year. De- preciation on the repair tools will be $10,000. Prepare an income statement for the shop based on these estimates. The tax rate is 35 percent.

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