Reference no: EM131856347
Intensive Care Urology Practice (ICUP), a not-for profit business, has revenues in 2017 of $150,000. Expenses are $80,000 plus depreciation of $20,000. All revenues were collected in cash, and all expenses, excluding depreciation, were paid in cash during the year. No other assets were purchased and no money was borrowed
A: Construction ICUP's Income Statement:
Revenue:
Expenses:
Net Income:
B: What was ICUP's Cash Flow for the year?
Net Income:
Depreciation:
Cash Flow:
C: If PU changed it's depreciation method so that the Depreciation Expense doubled to $160,000, what would be the new Net Income (other expenses remained the same)?
Revenue:
Depreciation:
Other Expenses:
Total Expenses:
Net Profit:
D: Again, If (under GAAP) ICUP changed its depreciation method so that the Depreciation Expense double to $160,000, what would be the new Cash Flow?
New Profit:
Depreciation:
Cash flow:
E. Comment on the results: