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bradywine hospital, a not-for-profit business, had revenues of $12 million in 2004. Expenses other than depreciation totaled 75% of revenues, and depreciation expense was $1.5

bradywine hospital, a not-for-profit business, had revenues of $12 million in 2004. Expenses other than depreciation totaled 75% 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. Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this affect Brandywine's net income, total profit margin, and cash flows? it would not change anything it would double everything net income would be 0, Profit would be 0, cash flow would be $3 million net income would be $3 million, profit would be 25% and cash flow would be zero

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