Impact of Depreciation Calculation Procedures on Cash Flow at Brandywine Clinic
Calculating Original Cash Flow
Original Expenses (excluding Depreciation): 76% of $10.4 million = $7.904 million
Original Cash Flow: $10.4 million - $7.904 million = $2.496 million
Calculating New Cash Flow after Depreciation Change
New Depreciation Expense: $1.7 million * 2 = $3.4 millionNew Expenses (excluding Depreciation): 76% of $10.4 million = $7.904 million
New Cash Flow: $10.4 million - $7.904 million = $2.496 million
As we can see from the calculations, the change in depreciation calculation procedures did not impact Brandywine Clinic's cash flow. The cash flow remains the same at $2.496 million. Since there is no change in cash flow, the amount of change is neither negative nor positive.