Depreciation effects on net income

Reference no: EM1364206

Brandywine Homecare, a not-for-profit business, had revenues of 12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was 1.5 million. All revenues collected in cash during the year and all expenses other than depreciation were paid in cash.

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?

Reference no: EM1364206

Questions Cloud

Steps to develop a budget : Consider your health care organization or another health care organization with which you are familiar. What are the steps to develop a budget in that organization?

Compute the horizontal distance the bal : find the horizontal distance the ball would travel if the same spring were aimed 32.0 deg from the horizontal.

Challenges of managing a multicultural environment : What are the challenges of managing a multicultural environment for a virtual, Internet-based organization? How would you manage those challenges?

Calculate an rsa signature on a long message : Would it be reasonable to compute an RSA signature on a long message by ?rst computing what the message equals mod n, for some ?xed n and then signing this computed value only. Why or why not?

Depreciation effects on net income : Brandywine Homecare, a not-for-profit business, had revenues of 12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was 1.5 million.

Illustrate what can you say about price elasticity of demand : illustrate what can you say about the price elasticity of demand for DVD players. Will this price reduction necessarily lead to an increase in profits for DVD player manufacturers.

America health insurance system : What trends can we already see and what changes can we anticipate in America's health insurance system over the decades ahead? What is driving these changes?

Foundations and challenges in strategic management : In a narrative format, discuss Walmart from a strategic perspective. Information concerning recent changes in the firms is readily available online and should be accessed.

Normal cost of capital : Myers Business Systems is estimating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given below:

User Account

All Pages