Mainline Clinic, a for - profit business, had revenues of $ 1 1 . 3 million last
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Mainline Clinic, a forprofit business, had revenues of $ million last year. Expenses other than depreciation totaled percent of revenues, and depreciation expense was $ million. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Mainline must pay taxes at a rate of percent of pretax operating income.
Now, suppose the company changed its depreciation calculation procedures still within GAAP such that its depreciation expense was halved. How would this change affect Mainline's profit margin? If profit margin would go down, enter the amount of the change as a negative number. If profit margin would go up enter the amount of the change as a positive number.
Enter your answer as a percent, rounded to one decimal place. Omit the sign. For example, if the answer is enter as If the answer is negative, place a minus sign before the answer.
Related Book For
Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management
ISBN: 9781640551862
7th Edition
Authors: Kristin L. Reiter, Paula H. Song
Posted Date: