Bradywine Homecare

Brandywine Income Statement, 2007 Revenue 12,000,000 Expenses: dispraise 1,500,000 Other Expenses 9,000,000 meat Expenses 10,500,000 elucidate Income 1,500,000 check Profit margin13% Brandywine Cash Flows Statement, 2007 Cash 12,000,000 correspond: derogation 1,500,000 less(prenominal): Expenses (9,000,000) give notice Cash 4,500,000 Supposed the corporation alterd its depreciation calculation procedures (still within GAAP) such that its depreciation expenses doubled. How would this change affect Brandywines give notice income, total profit margin, and bullion break away? If Brandywine doubled its depreciation expenses, their expenses would increase and the net income would vanish. As for profit margin it would hang and the company would not be profitable and the interchange flow would increase.

For example, Brandywine home care would be as follow: add of depreciation Revenue 12,000,000 Expenses: Depreciation 3,000,000 Other Expenses 9,000,000 Total Expenses 12,000,000 Net Income - Total Profit Margin0% Brandywine Cash Flows Statement, 2007 Cash 12,000,000 Add: Depreciation 3,000,000 Less: Expenses (9,000,000) Net Cash 6,000,000 Explain the difference amid hard currency and aggregation be. Be sure to include a reciprocation of the revenue recognition and matching principles. According to Gapenski, bullion st ory is the process by which an economic even! t is recognize when a cash transaction actually takes place regardless of when the expediency was provided. Advantages to cash be is it is simple to use and hands-down to understand. In addition, cash accounting is very similar to impose accounting; therefore it is very easy to translate cash accounting statements into income tax filing reports. On the other hand, accrual accounting...If you pauperism to get a full essay, order it on our website: BestEssayCheap.com

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