Excerpts from the financial statements of Briggs & Stratton Corporation and Ramsay Health Care, Inc. are provided next. (Note: Year 1 is previous year and Year 2 is current year.)

Required:
1. Reconcile the difference, if any, between the change in Patient accounts receivable as reported in the statement of cash flows and the change in receivables based on the balance sheet values for each company.
2. Explain the different reporting practices adopted by the two companies with respect to adjustments made in the statement of cash flows for changes in accounts receivable.

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Briggs and Stratton Corporation Excerpts from Consolidated Balance Sheets as of July 3, Year 2 and June 27, Year I Year 2 Year I Assets Current assets Cash and cash equivalents Short-term investments Receivables, less reserves of $1,678,000 and $754,000, respectively $221,101,000 $ 39,501,000 70,422,000 -0- 122,597,000 124,981,000