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

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?

a. 27.6

b. 26.6
c. 3.4

a. To find the total expenses for 2007, we need to subtract the net income from the total revenues.

Total Expenses = Total Revenues - Net Income
Total Expenses = $30 million - $2.4 million
Total Expenses = $27.6 million

b. To find the total cash expenses for 2007, we need to subtract depreciation expense from the total expenses.

Total Cash Expenses = Total Expenses - Depreciation Expense
Total Cash Expenses = $27.6 million - $1 million
Total Cash Expenses = $26.6 million

c. The hospital's 2007 cash flow can be calculated by adding back the depreciation expense to the net income.

Cash Flow = Net Income + Depreciation Expense
Cash Flow = $2.4 million + $1 million
Cash Flow = $3.4 million

a. To calculate total expenses for 2007, we need to subtract the net income and depreciation expense from the total revenues.

Total Expenses = Total Revenues - Net Income - Depreciation Expense

In this case:
Total Expenses = $30 million - $2.4 million - $1 million

b. To calculate total cash expenses for 2007, we need to subtract the depreciation expense from the total expenses, since depreciation is a non-cash expense.

Total Cash Expenses = Total Expenses - Depreciation Expense

In this case:
Total Cash Expenses = Total Expenses - $1 million

c. To calculate the hospital's 2007 cash flow, we need to subtract the total cash expenses from the net income.

Cash Flow = Net Income - Total Cash Expenses

In this case:
Cash Flow = $2.4 million - Total Cash Expenses

To find the answer for each part, substitute the given values into the respective equations and perform the calculations.