Reference no: EM132484248

Intensive Care Urology Practice (ICUP), a not-for-profit business, had revenues in 2018 of $700,000. Expenses are $400,000, plus depreciation of $100,000. All revenues were collected in cash, and all expenses, excluding depreciation, were paid in cash during the year. No other assets were purchased, and no money was borrowed.

Construct ICUP's Income Statement.

Net Income $_________

Question 1: What was ICUP's Cash Flow for the year?

Cash Flow $________

Question 2: If PU changed its depreciation method so that the Depreciation Expense tripled to $300,000, what would be the new Net Income (other expenses remained the same)?

Net Income $______

Question 3: Again, if (under GAAP) ICUP changed its depreciation method so that the Depreciation Expense tripled to $300,000, what would be the new Cash Flow?