Reference no: EM13974492
Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75% of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other that depreciation were paid in cash. a. Construct Brandywine's 2011 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?
|
Debt to assts-asset turnover and fixed asset turnover
: Debt to assts=60%, quick ratio= 1.1, asset turnover=5x, fixed asset turnover=12.037x, current ratio=2, average collection period=17.071 days. cash________, receivables________, inventory__________, total current assets___________, plant and equipment..
|
|
Not-for-profit acute care facility
: General Hospital, a not-for-profit acute care facility, has the following cost structure for its inpatient services: Fixed costs: $10,000,000; Variable cost per inpatient day $200; Charge (revenue) per inpatient da $1,000. The hospital expects to hav..
|
|
Raise some funds to pay for new equipment
: The Flat Corporation needs to raise some funds to pay for new equipment. They issue $600,000 worth of 12-year bonds with semi-annual coupons at r(2)=10%. At the time of issue, interest rate in the market place are i(2)=9%. How much money did they rai..
|
|
What is the net investment required
: The president of Real Time Inc. has asked you to evaluate the proposed acquisition of a new computer. The computer's price is $40,000, and it falls into the MACRS 3-year class. Purchase of the computer would require an increase in net operating worki..
|
|
The firms depreciation expense
: Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75% of revenues, and depreciation expense was $1.5 million. What were Brandywine's net income, total profit margin, and cash..
|
|
Income statement and balance sheet in regards to timing
: What is the difference between the income statement and balance sheet in regards to timing? What is wrong with this statement: "The clinic's cash balance for 2011 was $150,000, while its net income on December 31, 2011 was $50,000."
|
|
Mainlines net income-total profit margin and cash flow
: Assume that Mainline Homecare, a for-profit corporation, had exactly the same situation as reported earlier (Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. What were Mainlines' net income, total profit margin, an..
|
|
Flecibility issues-projected liabilities and owners equity
: Flecibility issues are those which. Earl Jason is saving for a pair of jet skis. How much money must Earl put aside now to receive $14,000 six years from now if the money is compounding at an 8% annual compound rate? A bond which is valued at par has..
|
|
Project has an initial requirement
: A project has an initial requirement of $310,000 for fixed assets and $62,000 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $160,000. The ..
|