Sedona Healthcare, a not-for-profit business, had revenues of $31 millions in 2016. Expenses other than depreciation totaled 74% of revenues, and deprecation expense was $1.8 million. All revenues were collected in cash during the year and all expenses other than deprecation were paid in cash.
a. Construct Sedona Healthcare's 2016 income statement
b. What were Sedona Healthcare's net income, total profit margin and cash flow?
c. Now, suppose the company changed its depreciation calculation procedure (still within GAAP) such that its deprecation expense doubled. How would this change affect Sedona Helathcare's net income, total profit margin and cash flow?
Make sure your answer are in the proper format.