Reference no: EM132654186
Question - Intensive Care Urology Practice (ICUP), a not-for-profit business, had revenues in 2019 of $900,000. Cash Expenses are $600,000, 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.
Required -
a. Construct ICUP's Income Statement.
b. What was ICUP's Cash Flow for the year?
c. 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)?
d. 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?