...Brandywine Homecare Renne Brown Dr. Merle Point-Johnson HSA525 Healthcare Financial Management January 22, 2012 Brandywine 1 1. Construct Brandywine’s 2007 income statement The income statement summarizes the operations (i.e.the activities) of an organization with a focus on its revenues, expenses, and profitability (Gapenski, pg. 74,2008). The income statement of Brandywine Homecare is presented in Table1: Brandywine Homecare Income Statement 2 Revenues: $12million Expenses: $ 9 million Depreciation $1.5million Total Expenses ...
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...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 records. Accrual accounting is considered to be the standard accounting practice for most companies. Equity is the ownership claim against total assets. For investor-owned businesses, equity is the amount of owner-supplied financing. Equity for not-for-profit businesses is the amount of capital supplied by the government grants, charitable contributions or other organization. Brandywine Homecare Brandywine Homecare, a not-for-profit business, has reported revenues of $12 million in 2007. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. It is reported that all revenues were collected in cash during the year and all expenses other than depreciation...
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...Assignment #1 Brandywine Homecare Penny Payne Merle Point-Johnson HAS 525 - Healthcare Finance: An Introduction to Accounting and Finance Management January 21, 2012 Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. 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. 1. Construct Brandywine’s 2007 income statement. Brandywine Homecare Income statement Month ending December 31, 2007 Revenue $12,000,000 Total revenue $12,000,000 Expenses: Depreciation $ 1,500,000 Other 9,000,000 Total expenses $10,500,000 An income statement, or statement of operations, takes the difference between total revenues and total expenses, to show a net income (which can be profit or loss). If revenue exceeds expenses, the result is a profit. If expenses exceeds revenue, the result is a loss. The revenues and expenses, other than depreciation, were collected and paid in cash. The company uses the cash accounting method. Depreciation expense is still considered and all profits must be reinvested in the business. 2. What were Brandywine’s 2007 net income, total profit margin, and cash flow? The net income for Brandywine Homecare is $1,500,000. The total profit margin, also known as total margin, is the net income divided by total...
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...Introduction Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2007. 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. My report will contain the answers to the following questions: 1. Construct Brandywine’s 2007 income statement. 2. What were Brandywine’s 2007 net income, total profit margin, and cash flow? 3. Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s net income, total profit margin, and cash flow? 4. Explain the difference between cash and accrual accounting. Be sure to include a discussion of the revenue recognition and matching principles. 5. Explain the difference between equity section of a not-for-profit business and an investor-owned business. 1. Construct Brandywine’s 2007 income statement. |Brandywine Homecare | | | |Income Statement | | | |Year Ended December 31, 2007 | | ...
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...Assignment #1 Brandywine Homecare Michelle Rose HAS 525 Health Financial Management October 23, 2011 Construct Brandywine’s Homecare 2007 Income Statement. Brandywine’s Homecare Income Statement Revenue $12,000,000 Operating Expenses: Salaries Expense $5,000,000 Supplies $ 120,000 Utilities $ 140,000 Insurance $ 750,000 Depreciation $ 1.7 million Total $ 4.3 million Net Income $ 7.7 million What were Brandywine’s 2007 net income, total profit margin, and cash flow? Net income is the residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period. Net income can be distributed among holders of common stock as a dividend or heal by the firm as an addition to retained earnings. As the profit and earnings used income, net earnings, and net profit for net income. However, net income called the bottom line because it’s typically found on last line of the company income statement. One of the most important concepts to understand is that net income is not a measure of how much cash a company earned during a given period. Revenues-expenses= net income $12,000,000 - $7.7 million = $4.3 million (net income) Total profit margin tells how profit a company makes for evaluation dollar generates in revenues. It is the percentage of revenue that a company keeps as profit after accounting for fixed and variable costs. It is calculated by dividing...
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...Application: Week 2 Numerical Problems Edilsavier Hernandez Walden University 1. Problem 3.5 form page 106, Chapter 3 a. Brandywine’s 2001 income statement: Brandywine Homecare December 31, 2011. Statement of income Revenues: $12,000,000 Expenses: (expenses - $9,000,000)+(depreciation - $1,500,000): total expenses: $10,500,000 Net income: $1,500,000 b. Net income, total profit margin, and cash flow Net income: total revenues – total expenses: $1,500,000 Total profit margin: [net income / revenues] *100 = $12.5 Cash flow: net income + depreciation: $3,000,000 c. How changes affect if depreciating value doubles: Now depreciating value is $3,000,000 Net income: total revenues – total expenses: $0 Total profit margin: [net income / revenues] *100 = $0 Cash flow: net income + depreciation: $3,000,000 d. Impact if depreciating expenses halves Now depreciating value is $750,000 Net income: total revenues – total expenses: $2,250,000 Total profit margin: [net income / revenues] *100 = $18.75 Cash flow: net income + depreciation: $3,000,000 2. Problem 4.5 form page 141, Chapter 4 Balanced sheet: a. The balanced sheet differs from the one presented in Exhibit 4.1 for Sunnyvale due to difference in the cases of total assets, total liabilities, and debt ratio. The values of assets and liabilities for BestCare HMO is showing less values than does of Sunnyvale Clinic. The assets and long term investment of Sunnyvale is showing...
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...CV - Pamela Sue Jenkins Pamela Sue Jenkins BSN, RN, CPEN Home Address Work Address 119 Fieldcrest Drive 1600 Rockland Road Cochranville, PA 19330 Wilmington, DE 19899 610-998-0615 302.651.4183 E-mail: pedrn1985@gmail.com pjenkins@nemours.org Academic Preparation 2012 – Present Master of Science - Leadership Wilmington University & Education Wilson Graduate Center 31 Reads Way New Castle, DE 19720 1985 Bachelor of Science – Nursing Lebanon Valley College 101 N. College Avenue Annville, PA 17003-1400 1982 – 1985 Diploma in Nursing Bryn Mawr School of Nursing 130 S. Bryn Mawr Avenue Bryn Mawr, PA 19010 1980 – 1982 Associates Degree – Nursing Lebanon Valley College 101 N. College Avenue Annville, PA 17003-1400 Licenses DE Registered Professional Nurse (multi-state) L1 – 0036388 PA Registered Professional Nurse...
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...1. Construct Brandywine’s 2007 Income statement. ____________________________________________________________ _ Brandywine Homecare Statement of Income Year Ended December 31,2007 ____________________________________________________________ __ Revenue: $12,000,000 Total Revenue $12,000,000 Expenses: Expenses $ 9,000,000 Depreciation $ 1,500,000 Total Expenses $ 10,500,000 Net Income $1,500,0000 2. What were Brandywine’s 2007 net income, total profit margin, and cash flow? Brandywine’s net income for 2007 was $1,500,000. Net Income = Total revenue - Expenses Net Income = $12,000,000 - $1,500,000 = $1,500,000 Total profit margin is net income divided by total revenues and measures expense control for a given amount of revenues. Total profit margin = Net income / Total revenues Total Profit Margin = 1,5000,000 /12,000,000 = .125 = 12.50 % Cash flow is the actual amount of cash that is generated during the year. Cash flow= Net Income + Depreciation Cash Flow = 1,500,000 + 1,500,000 = $3,000,000 3. Suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine’s new income, total profit, and cash flow? With depreciation doubled it would be $3,000,000. Calculations on how net income, total profit and cash flow...
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...Assignment # 1 Teresa A Arledge Dr. Laura Forbes HSA525 January 28, 2012 According to Gapenski, financial accounting involves identifying, recording, and communicating the operational results and status of an organization. Financial accounting information is conveyed by a business’s financial statements. The three most important are: income statement, balance sheet, and statement of cash flows. The need for financial statements is to provide accounting information to outside investors so they will have reliable information regarding the financial status of the organization. However, the information presented in financial statements is as important to managers as it is to investors. Perhaps the most important question about a business’s financial status is whether or not it is making money. According to Gapenski, the income statement provides information about a business’s operations and economic profitability. The income statement has often been called by other names such as statement of operations and statement of activities. The income statement reports the results of operations over some period of time, say a year. It has three key elements: Revenues represent both cash received and payer obligation. Expenses are resources required to produce the goods or services. Net income is the profit, and it equals revenues minus expenses. In this assignment I will illustrate an income statement for Brand wine Homecare which is a not -for profit business. In 2007 Brandywine Healthcare...
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