c. What is Grec compare with the values for d. The before-tax profit margin for Green Valley is opera divided by total revenues. Calculate Green Valley's bef control when comparing an investor-owned business V profit margin. Why might this be a better measure of 3.4 Great Forks Hospital reported net income for 2015 of $ on total revenues of $30 million. Depreciation expenset for-profit business? million. a. What were total expenses for 2015? IM b. What were total cash expenses for 2015? (Hint: Assur expenses, except depreciation, were cash expenses.) c. What was the hospital's 2015 cash flow? 3,5 Brandywine Homecare, a not-for-profit business, had reu million in 2015. Expenses other than depreciation totale of revenues, and depreciation expense was $1.5 million. were collected in cash during the year, and all expenses depreciation were paid in cash. a. Construct Brandywine's 2015 income statement. b. What were Brandywine's net income, total profit mar flow: c. Now, suppose the company changed its depreciation procedures (still within GAAP) such that its depreciau doubled. How would thi 03 12M 9m SAL Chapter 3: The Income Statement and Statement of Changes in E d. Suppose the change had halved, rather than doubled, the firm's depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow? 3.6 Assume that Mainline Homecare, a for-profit corporation, had exactly the same situation as reported in Problem 3.5. However, Mainline must pay taxes at a rate of 40 percent of pretax (operating) income. Assuming that the same revenues and expenses reported for financial accounting purposes would be reported for tax purposes, redo Problem 3.5 for Mainline. 3.7 Consider Southeast Home Care, a for-profit business. In 2015, its net income was $1,500,000 and it distributed $500,000 to owners in the form of dividends. Its beginning-of-year equity balance was $12,000,000. Use this information to construct the business's statement of changes in equity. What is the ending 2015 value of the c. What is Grec compare with the values for d. The before-tax profit margin for Green Valley is opera divided by total revenues. Calculate Green Valley's bef control when comparing an investor-owned business V profit margin. Why might this be a better measure of 3.4 Great Forks Hospital reported net income for 2015 of $ on total revenues of $30 million. Depreciation expenset for-profit business? million. a. What were total expenses for 2015? IM b. What were total cash expenses for 2015? (Hint: Assur expenses, except depreciation, were cash expenses.) c. What was the hospital's 2015 cash flow? 3,5 Brandywine Homecare, a not-for-profit business, had reu million in 2015. Expenses other than depreciation totale of revenues, and depreciation expense was $1.5 million. were collected in cash during the year, and all expenses depreciation were paid in cash. a. Construct Brandywine's 2015 income statement. b. What were Brandywine's net income, total profit mar flow: c. Now, suppose the company changed its depreciation procedures (still within GAAP) such that its depreciau doubled. How would thi 03 12M 9m SAL Chapter 3: The Income Statement and Statement of Changes in E d. Suppose the change had halved, rather than doubled, the firm's depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow? 3.6 Assume that Mainline Homecare, a for-profit corporation, had exactly the same situation as reported in Problem 3.5. However, Mainline must pay taxes at a rate of 40 percent of pretax (operating) income. Assuming that the same revenues and expenses reported for financial accounting purposes would be reported for tax purposes, redo Problem 3.5 for Mainline. 3.7 Consider Southeast Home Care, a for-profit business. In 2015, its net income was $1,500,000 and it distributed $500,000 to owners in the form of dividends. Its beginning-of-year equity balance was $12,000,000. Use this information to construct the business's statement of changes in equity. What is the ending 2015 value of the
