Question
(49 Points) 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
(49 Points) 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.
a. Construct ICUP's Income Statement.
b. What wasICUP'sCash 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?
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