Consider the following income statement

bestcare HMO statement of operations Year ended june 30,2011 ( in thousands)

Revenue

premiums earned 26,682

coinsurance 1,689

interest and other income 242

total revenues 28,613

Expenses

salaries and benefits 15,154

medical supplies and drugs 7,507

insurance 3,963

provision for bad debts 19

depreciation 367

interest 385

total expenses 27,395

net income 1,218

a.) how does this income statement differ from the one presented in exhibit 3.1?

b)did the best care spend 367,000 on new fixed assets during fiscal year 2011?? If not, what is the total economic rationale behind its reported depreciation expense?

c) explain the provision for bad debts entry