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IC Optometry a not for profit business, had revenues in 2012 of $35,000. Expenses other than depreciation were 80% of revenues and depreciation was $5,000. All revenues were collected in cash, and all expenses, excluding depreciation, were paid in cash and all expenses exlduing depreciation were paid in cahs during the year. No other assets were purchased, and no money was borrowed during the year.
A. Construct an Income StatementB. What was Cash Flow for the year?C. If (under GAAP) IC changed its depreciation method so that the Depreciation Expense tripled, what would be the new Net Income?D. Again if (Under GAAP) IC changed its depreciation method so that the Depreciation Expense tripled, what would be the Cash Flow?
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