Assignment 1 Hsa 525

Assignment 1- Brandywine Homecare

Brandywine Homecare, a not-for-profit business, had revenues of 12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, which is 9 million, and depreciation expense was 1.5 million. Income statement is the one of the three financial statements. The other two are the balance sheet and the statement of the cash flows. Brandywine Homecare's total profit margin of 12.5 percent shows that the homecare makes 12.5 cents on every dollar of total revenues. If the company doubled its depreciation, both net income and profit margin would be zero. The cash flow will be the same for both cases, which is 3 million. Cash accounting and accrual accounting are two similar methods of maintaining accurate accounting...