Accounting basic questions

Accounting
Tutor: None Selected Time limit: 1 Day

. Great Forks Hospital reported net income for 2014 of $2.5 million on total revenues of $30 million. Depreciation expense totaled $1.5 million.

a)      What were total expenses for 2014?

b)      What were total cash expenses for 2014? (Hint: Assume that all expenses, except depreciation, were cash expenses.)

c)      What was the hospital's 2014 cash flow?

 

Oct 29th, 2015

Thank you for the opportunity to help you with your question!

a. Total revenues =         30

     less:net income =       (2.5)

     Total expenses  =      27.5

b. Total expenses(as above)       27.5

     less: depreciation(non cash)   (1.5)

     total cash expenses                 26

c. Total revenue(suppose all in cash)          30

     less: total cah expenses(suppose paid) (26)

     Hospitals cash flow                                   4

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Oct 29th, 2015

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