Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

Task1. Brandywine Clinic, a not-for-profit business, had revenues of $12million in 2012. Expenditures other than depreciation totalled 75 percent of revenues, and depreciation expenditure was $1.5 million. All revenues were collected in cash throughout the year, and all expenditures other than depreciation were paid in cash.

problem1. Make Brandywine's income statement of the year 2012.

problem2. What were Brandywine's total profit margin, net income and cash flow?

problem3. Now, assume the company changed its depreciation computation process (still in GAAP) such that its depreciation expense doubled. How would this change influence Brandywine's net income, cash flow and total profit margin?

problem4. Assume the change had halved, rather than doubled, the firm's depreciation expenditure. Now, what would be impact on net income, total profit margin, and cash flow?

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M94161

Have any Question? 


Related Questions in Financial Accounting

Use the following information to determine the break-even

Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 41,000 Units Unit selling price $15.45 Unit variable cost $9.40 Fixed costs $177,000 11,456 29,256 ...

Your firm is planning to move to international financial

Your firm is planning to move to International Financial Reporting Standards (IFRS) reporting within the next fiscal year. Analyze the risks and rewards by moving to IFRS and the impact that technology will have on the c ...

Pop-in burgers owns numerous restaurants and food

Pop-In Burgers owns numerous restaurants and food production facilities. The company routinely evaluates proposals to drive operational efficiency. Four such proposals are currently under review. One entails the suggesti ...

Suppose you borrow buy a 200000 hours and put 50000 down

Suppose you borrow buy a $200000 hours, and put $50,000 down toward the purchase price. You borrow the rest from a bank at 6% annual interest, compounded monthly, on 1.1.16,for a 30-years period. The plan is that you pay ...

Compute weighted average contribution marginwaterside

Compute Weighted Average Contribution Margin Waterside Company sells two products, Yellow models and Striped models. Yellow models sell for $50 per unit with variable costs of $30 per unit. Striped models sell for $60 pe ...

Omicron corsquos headquarters are located on a floodplain

Omicron Co.’s headquarters are located on a floodplain and the company sustained significant losses as a result of a February 20X4 flood, the first such flood in 100 years. The flood occurred prior to the issuance of Omi ...

The argument among accountants and nancial statement users

The argument among accountants and ?nancial statement users over the proper valuation procedures for assets and liabilities resulted in the release of SFAS No. 115 (see FASB ASC 320-19). The statement requires current-va ...

Comparative financial statements for weller corporation a

Comparative financial statements for Weller Corporation, a merchandising company, for the fiscal year ending December 31 appear below. The company did not issue any new common stock during the year. A total of 700,000 sh ...

Little oil is an oil-drilling company that has defaulted on

Little Oil is an oil-drilling company that has defaulted on several of its loans. Giantoil Oil Refining is owed $230,000 on a loan that is secured by some of Little Oil’s drilling equipment. This equipment is worth aroun ...

Foto company makes 50000 units per year of a part it uses

Foto Company makes 50,000 units per year of a part it uses in the products it manufactures. The cost per unit of this part is shown below: direct materials .............. $12.00 direct labor ..................  10.10 var ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate