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Problem 3 Tampa General Hospital's abbreviated income statement is presented below: Total operating revenues $140,000,000 Depreciation expense $10,000,000 Cash operating expenses $90,000,000 Net income
Problem 3 Tampa General Hospital's abbreviated income statement is presented below: Total operating revenues $140,000,000 Depreciation expense $10,000,000 Cash operating expenses $90,000,000 Net income $40,000,000 Assume the hospital is a not-for-profit corporation for parts a - b: a. What was the hospital's 2022 cash flow? b. Now, suppose the company changed its depreciation method (still within GAAP) such that its depreciation expense double. How would this change affect cash flow? Please show your work. Assume the hospital is a for-profit corporation for parts c: c. Suppose the company reported a pretax (operating) income of $40,000,000 on total revenue of $140,000,000 and that depreciation totaled $10,000,000, and that all expenses, except depreciation, were cash expenses. What was the hospital's 2022 cash flow if the tax rate is 20% of pretax income?
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