Henrietta Leavitt Health Clinic, a for-profit business, had revenues of $10 million in 2019. Expenses other than depreciation totaled 70% of revenues, and depreciation expense was $1.3 million. They also must pay taxes at a rate of 40 % of pretax income. All revenues were collected in cash during the year, and all expenses, other than depreciation were paid in cash. 1. Construct Henrietta Leavitt Health Clinic’s 2019 income statement. 2. What were Henrietta Leavitt Health Clinic’s net income, total profit margin, and cash flow? 3. Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Henrietta Leavitt Health Clinic’s net income, total profit marge, and cash flow? show all of your work
Henrietta Leavitt Health Clinic, a for-profit business, had revenues of $10 million in 2019. Expenses other than
1. Construct Henrietta Leavitt Health Clinic’s 2019 income statement.
2. What were Henrietta Leavitt Health Clinic’s net income, total profit margin, and cash flow?
3. Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Henrietta Leavitt Health Clinic’s net income, total profit marge, and cash flow? show all of your work
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