3 5 Brandywine Homecare, a not for profit business, had revenues of $ 1 2 million in 2 0 1 5 Expenses other than depreciation totaled 7 5 percent of revenues, and depreciation expense was $ 1 5 million All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash a Construct Brandywine's 2 0 1 5 income statement b What were Brandywine's net income, total profit margin, and cash flow c Now, suppose the company changed its depreciation calculation procedures ( still within GAAP ) such that its depreciation expense doubled How would this change affect Brandywine's net income, total profit margin, and cash flow d Suppose the change had halved, rather than doubled, the firm's depreciation expense Now, what would be the impact on net income, total profit margin, and cash flow

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Question: 3 . 5 Brandywine Homecare, a not - for - profit business, had revenues of $ 1 2 million in 2 0 1 5 .

3.5

Brandywine Homecare, a not

-

for

-

profit business, had revenues of $

12

million in

2015 .

Expenses other than depreciation totaled

75

percent

of revenues, and depreciation expense was $

1.5

million. All revenues

were collected in cash during the year, and all expenses other than

depreciation were paid in cash.

.

Construct Brandywine's

2015

income statement.

.

What were Brandywine's net income, total profit margin, and cash

flow?

.

Now, suppose the company changed its depreciation calculation

procedures

(

still within GAAP

)

such that its depreciation expense

doubled. How would this change affect Brandywine's net income,

total profit margin, and cash flow?

.

Suppose the change had halved, rather than doubled, the firm's

depreciation expense. Now, what would be the impact on net

income, total profit margin, and cash flow?

3.5 Brandywine Homecare, a not-for-profit business, had revenues of $12 million

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