What would be the impact on net income, total profit margin, Cost Accounting

Assignment Help:

Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than 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?


Related Discussions:- What would be the impact on net income, total profit margin

Overhead cost analysis and classification, Overhead Cost Analysis and Class...

Overhead Cost Analysis and Classification Overhead costs may be analyzed into a) Which that may be directly identifiable along with a single cost center, as an  example of,

Standard costing and variance analysis using kaizen costing, Discuss how SD...

Discuss how SD can use standard costing and variance analysis to prepare meaningful reports when using Kaizen Costing. By the use of standard costing and variance analysis, fr

Compute the break even point, Park & Morgan, a law firm, is considering ope...

Park & Morgan, a law firm, is considering opening a legal clinic for midde- and low income clients. The clinic would bill at a rate if $18 per hour. It would employ law students as

Determine a simplified single cost allocation rate, When implementing ABC, ...

When implementing ABC, once a company has identified business activities and their costs, the company will probably: A) determine a simplified single cost allocation rate B)

Explain the respective roles of the securities, Explain the respective role...

Explain the respective roles of the Securities and Exchange Commission (SEC) and the Internal Revenue Service (IRS) in the setting of accounting standards?

Cost volume analysis, Production of a particular product costs $50 per mate...

Production of a particular product costs $50 per material, $80 per labour and variable overhead is 75% of labour cost. If the selling price per unit is $230 and fixed cost amounts

the practice of standard costing., Determine why  JIT, TQM and AMTs may no...

Determine why  JIT, TQM and AMTs may not always be entirely compatible with  the practice of standard costing.

Discount model of stock valuation-ddm, Value one stock using the dividend d...

Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model).  See chapter 18 of the textbook

Job order costing, cost accounting is said to three different phases ?? nam...

cost accounting is said to three different phases ?? name them.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd