Problem 3.5 from pg 114 ? Chapter 3
? Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2015. Expenses other than depreciation totaled 75% of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash.
o Construct Brandywine?s 2015 income statement.
o What were Brandywine?s net income, total profit margin and cash flow?
o Now, suppose the company changed its depreciation calculation procedures (still within GAAP) such that its depreciation expense doubled. How would this change affect Brandywine?s net income, total profit margin and cash flow?
o Suppose the change had halved, rather than doubled, the firm?s depreciation expense. Now, what would be the impact on net income, total profit margin and cash flow?
Problem 4.5 from pg 152, Chapter 4
? Consider the following balance sheet:
o How does this balance sheet differ from the one presented in Exhibit 4.1 for Sunnyvale?
o
o What is BestCare?s net working capital for 2015?
o What is BestCare?s debt ratio? How does it compare with Sunnyvale?s debt ration?
Problem 4.6 from pg 153, Chapter 4
? Consider the following balance sheet:
o How does this balance sheet differ from the ones presented in Exhibit 4.1 and Problem 4.5?
o What is Green Valley?s net working capital for 2015?
o What is Green Valley?s debt ratio? How does it compare with the debt rations for Sunnyvale and BestCare?
The Global Harmonization System (GHS) is a unified international system for the classification and labeling of chemicals, designed by the United Nations. It was adopted by the Occupational Safety and Health Administration (OSHA) in 2008 for use on the MSDS (Material Safety Data Sheet). The following link to the OSHA (n.d.) website details information on GHS and is provided for further reference https://www.osha.gov/dsg/hazcom/ghs.html#1.1.
National Fire Protection Association (NFPA) System of Identifying Potential Hazards: NFPA uses a hazard diamond shaped figure divided into four color-coded quadrants for rapid identification of hazards:
? Hazards: health, flammability, chemical reactivity
? Severity: 0 to 4
References
Fire, F. (1996). The common sense approach to hazardous materials (2nd ed.). Tulsa, OK: PenWell. Hazmat. (n.d.). In Merriam?Webster?s online dictionary. Retrieved from http://www.merriam-
webster.com/dictionary/hazmat
Meyer, E. (2014). Chemistry of hazardous materials (6th ed.). Upper Saddle River, NJ: Pearson.
Occupational Safety and Health Administration. (n.d.). A guide to the globally harmonized system of classification and labelling of chemicals (GHS). Retrieved from https://www.osha.gov/dsg/hazcom/ghs.html#1.1
Schnepp, R., & Gantt, P. W. (1998). Hazardous materials: Regulations, response and site operations.
Independence, KY: Delmar Cengage Learning.
Zumdahl, S. S., & Zumdahl, S. A. (2000). Chemistry (5th ed.). Boston, MA: Houghton Mifflin Company.
Suggested Reading
Occupational Safety and Health Administration. (n.d.). A guide to the globally harmonized system of classification and labelling of chemicals (GHS). Retrieved from https://www.osha.gov/dsg/hazcom/ghs.html#1.1
