Question
Module 1 Quiz 2 - Balance Sheet and Income Statement 1. How much are HCD's total assets at the end of year 20x2? (in millions)
Module 1 Quiz 2 - Balance Sheet and Income Statement
1.
How much are HCD's total assets at the end of year 20x2? (in millions)
1
$23,682
$24,701
$716
$21,226
2.
HCD's largest asset is Property and Equipment, which represents their buildings, etc. What is their second largest asset at the end of year 20x2?
1
Long-term Debt
Goodwill
Accounts Receivable
Other Intangible Assets
3.
What business activity causes Goodwill to be recognized on a balance sheet?
1
Treating Customers Well
Acquisitions of other Businesses
Charitable Contributions
Profitable Operations
4.
What is HCD's largest liability on their balance sheet at the end of year 20x2?
1
Property and Equipment
Long-Term Debt
Additional Paid in Capital
Accounts Payable
5.
Note that LCD's Shareholders' Equity is far smaller than their Liabilities. In looking through their account titles in the Shareholders' Equity section, note that there is not one called Retained Earnings. Instead, we see a line item called "Accumulated Deficit." What is the interpretation of this line item?
1
HCD owes a lot of back taxes
HCD is bankrupt
HCD has been incurring more losses than profits over its lifetime
HCD has overdrawn its bank account
6.
How much was HCD's Net Income for year 20x2? (in millions)
1
$176
$181
$76
$1219
7.
What is HCD's largest Operating Expense during year 20x2?
1
Depreciation and amortization
Salaries, wages, and benefits
Supplies
Interest Expense
8.
Which of the following is true about HCD's line item "Net Operating Revenues before provision for doubtful accounts?" This is the top line on the income statement (Check all that apply)
1
Some of these revenues probably won't be collected
Revenue in 20x2 was 21,070
Revenues have been growing over time
Revenue in 20x2 was 19,611
9.
In HCD's footnotes, they give more details regarding the customer "types" that comprise their revenue. Which customer group generated the highest revenue in 20x2? (Hint: Look in the footnotes)
1
Medicare
Medicaid
Indemnity, self-pay, and other
Managed Care
10.
The provision for doubtful accounts in the second line of the income statement represents revenues that HCD has billed to customers and patients, but does not expect to collect. What percent of the top line on the income statement is HCD's provision for doubtful accounts in 20x2?
1
0%
7.4%
6.9%
10.0%
11.
HCD's provision for doubtful accounts is extremely large relative to other industries. Much of this is because, unlike in other industries, HCD cannot screen its customers on the basis of credit quality. Which customer group has given HCD the biggest collection difficulties? (Hint: Look at the footnotes)
1
Self-pay uninsured
Medicaid
Managed Care
Medicare
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