FINANCIAL MANAGEMENT COURSE- MMHA6160 week-2 assignment -finance 3.5 Brandywine Homecare Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year and all expenses other than depreciation were paid in cash. a. Construct Brandywines 2011 income statement. b. What were Brandywines net income, total profit margin, and cash flow? c. Now, suppose the company changed its depreciation calculation procedures (still within GAP) such that its depreciation expense doubled. How would this change affect Brandywines net income, total profit margin, and cash flow? d. Suppose the change had halved, rather than doubled, the firms depreciation expense. Now, what would be the impact on net income, total profit margin, and cash flow? 4.5 Consider the following balance sheet: _____________________________________________________________________________________ Best Care HMO Balance Sheet June 30, 2011 (in thousands) _____________________________________________________________________________________Assets Current Assets: Cash $2,737 Net premiums receivable 821 Supplies 387 Total current assets $3,945 Net property and equipment $5,924 Total assets $9,869 Liabilities and Net Assets Accounts payable-medical services $2,145 Accured expenses 929 Notes payable 382 Total current liabilities $3,456 Long-term debt $4,295 Total liabilities $7,751 Net assets-unrestricted (equity) $2,118 Total liabilities and net assets $9,869 a. What is BestCares net working capital for 2011? b. What is BestCares debt ratio? 4.6 Consider this balance sheet _____________________________________________________________________________________ Green Valley Nursing Home, Inc. Balance Sheet December 31, 2011 _____________________________________________________________________________________ Assets Current Assets: Cash $ 105,737 Investments 200,000 Net patient accounts receivable 215,600 Supplies 87,655 Total current assets $ 608,992 Property and equipment $2,250,000 Less accumulated depreciation 356,000 Net property and equipment $1,894,000 Total assets $2,502,992 Liabilities and Shareholders Equity Current Liabilities: Accounts payable $ 72,250 Accrued expenses 192,900 Notes payable 180,000 Total current liabilities $ 445,150 Long-term debt $ 1,700,000 Shareholders Equity: Common stock, $10 par value $ 100,000 Retained earnings 257,842 Total shareholders equity $ 357,842 Total liabili…
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