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

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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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