Brookline Specialty Hospital, a not-for-profit provider, had revenues of $12 million in 2018. Expenses other than depreciation totaled 75% of revenues. Brookline purchased fixed assets for $50 million in 2010 and expects to sell these assets for $20 million at the end of their 20-year lifetime.

a. Calculate Brooklines annual depreciation expense.

b. Construct Brooklines income statement for Year Ended December 31, 2018.

c. Calculate Brooklines net income, total profit margin, and approximate cash flow. In one sentence, provide an economic interpretation of its total profit margin.

d. Assume that Brookline is instead organized as a for-profit corporation. It has the same situation as reported in the original problem, but it now must pay taxes at a rate of 40% of pre-tax income. Calculate Brooklines net income, total profit margin, and approximate cash flow.