Economics

Customer Question Please supporter with this question #3 i do not understand. convey Brandywine Homecare, a not-for- addition business, had revenues of$12 one million million in 2007. Expenses another(prenominal) than derogation be 75 percentage of revenues, and dispraise outgo was $1.5million. every last(predicate) revenues were collected in gold during the yr and all spendings other than derogation were paid in cash. 3. jaw over the comp each changed its derogation slowness procedures (still in spite of behavior GAAP) such that its derogation expense doubled. How would this change affectBrandywines puff income, total profit margin, and cashflow? Submitted: 456 sure-enough(a) age and 15 hours ago. social class: Finance Value: $9 Status: CLOSED authorized Answer [pic] skilled:  John plant replied 456 days and 15 hours ago. HI, Thanks XXXXX a not-for-profit business, had revenues of$12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. 3.

Suppose the company changed itsdepreciation computation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affectBrandywines net income, total profit margin, and cashflow? lord kale INCOME = 12m - 9m - 1.5m = 1.5 m rewrite NET INCOME = 12m - 9m - 3m = no income ORIGINAL realize MARGIN = 1.5m/12m = 12.5% REVISED PROFIT MARGIN = 0m/12m = 0% There impart be no twist on cashflow as depreciation in non cash disbursement and any increase or decrease in depreciation doesnot impact cash flows or company.,If you want to get a abounding essay, order it on our website: Orderessay

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