Coastal Homecare, a not-for-profit business, had revenues of $12,000,000 in 2022. Total expenses, less depreciation, was 75% of revenues, and depreciation expense was $1,500,000. All revenues were collected in cash during 2022 and all expenses except depreciation were also paid in cash during 2022. a. Construct Coastal Homecare's 2022 income statement b. What were Coastal's net income and estimate of cash flow during 2022? c. Suppose that Coastal's depreciation expense was doubled for the year. How would such a change affect its net income and estimate of cash flow for 2022? d. What conclusion(s) may be drawn from your answers to parts B and C as it relates to the effect of depreciation on either/both net income and/or cash flow estimate(s) for a not-for-profit business? f. If Coastal were a for-profit business (instead of not-for-profit) and paid taxes of 40% of its reported net income, how would such a change affect the answers from parts B and C above. Be specific.

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a Income Statement for Coastal Homecare for 2022 Revenues 12000000 Expenses 75 of revenues 9000000 D... View the full answer