Brandy Wine Case

Brandywine Homecare Patricia Barringer Strayer University Health Finance Management HSA 525 Dr. Merle Point-Johnson October 19, 2011 Brandywine Homecare perform Brandywines 2007 income financial statement: 1. The Brandywine income statement is as follows: |Brandywine Income Statement | | | | | tax revenue | | | |12,000,000 | |Expenses | 9,000,000 | | rough-cut net income | 3,000,000 | | | | |less | | |disparagement | 1,500,000 | |Expense | | |profit Income | 1,500,000 | What were Brandywines 2007 realise income, original profit margin, and multifariousness stop? Brandywines net income was $1.5 million. The total profit margin, which we will claim is the net margin, is 1.5 million / 12 million = 12.5%. The immediate requital flow is $3,000,000. The cash flow is the net income + disparagement, so 1.5m + 1.5m = 3m. theorise the company changed its derogation calculation procedures (still within GAAP) such that its depreciation expense doubled, how would this change affect Brandywines net income, total profit margin, and cash flow?

If the depreciation expense doubled, the income statement would be as follows: |Brandywine Income Statement | | | | |Revenue |12,000,000 | |Expenses | 9,000,000 | |Gross Profit | 3,000,000 | | | | |less | | |Depreciation | 3,000,000 | |Expense |...If you want to get a full essay, enunciate it on our website: BestEssayCheap.com

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