Brandywine Homecare Patricia Barringer Strayer University Health Finance Management HSA 525 Dr. Merle Point-Johnson October 19, 2011 Brandywine Homecare fabricate Brandywines 2007 income argumentation: 1. The Brandywine income statement is as follows: |Brandywine Income Statement | | | | | receipts | | | |12,000,000 | |Expenses | 9,000,000 | | rough-cut mesh | 3,000,000 | | | | |less | | |disparagement | 1,500,000 | |Expense | | | crystalize Income | 1,500,000 | What were Brandywines 2007 realise income, substance profit margin, and multifariousness liquefy? Brandywines net income was $1.5 million. The total profit margin, which we will attain is the net 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. bet the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled, how would this change affect Brandywines net income, total profit 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 want to get a full essay, enunciate it on our website:
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