3.5. Brandywine Homecare, a not-for-profit business, had revenues of

$12, million in 2020. Expenses other than depreciation totaled 75

percnt 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 2020 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 GAP) such that its depreciation expense

doubled. How would this change affect Brandywine's net

income, total profit margin, and cash flow?