Brandywine Homecare Patricia Barringer Strayer University Health finance Management HSA 525 Dr. Merle Point-Johnson October 19, 2011 Brandywine Homecare Construct Brandywines 2007 income statement: 1. The Brandywine income statement is as follows: |Brandywine Income Statement | | | | | taxation | | | |12,000,000 | |Expenses | 9,000,000 | | usual Profit | 3,000,000 | | | | | slight | | | wear and tear | 1,500,000 | |Expense | | |Net Income | 1,500,000 | What were Brandywines 2007 realise income, total derive margin, and multifariousness execute? Brandywines force out income was $1.5 one thousand million. The total receipts margin, which we will assume is the crystalise margin, is 1.5 million / 12 million = 12.5%. The immediate payment flow is $3,000,000. The cash flow is the net income + disparagement, so 1.5m + 1.5m = 3m. Suppose the phoner changed its depreciation calculation procedures (still indoors GAAP) such that its depreciation write off doubled, how would this change affect Brandywines net income, total good margin, and cash flow?
If the depreciation expense doubled, the income statement would be as follows: |Brandywine Income Statement | | | | |Revenue |12,000,000 | |Expenses | 9,000,000 | |Gross Profit | 3,000,000 | | | | |less | | |Depreciation | 3,000,000 | |Expense |...If you take to get a salutary essay, enunciate it on our website:
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