Great Forks Hospital reported net income for 2007 of $2.4 million on

Question

total revenues of $30 million. Depreciation expense totaled $1 million.
a. What were total expenses for 2007?
b. What were total cash expenses for 2007? (Hint: Assume that all
expenses, except depreciation, were cash expenses.)
c. What was the hospital’s 2007 cash flow?

Answer 1

a. 27.6
b. 26.6
c. 3.4