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Question 2 Provided below is selected financial information for Higdon Hospital for the most recent four years of operations. Management has requested a comparative statement of income for internal use that highlights differences between gross and net patient service revenue. 2016.0 2017 2053.000 53055000 Services performed, at full established rates............. Services performed, at contractual rates. Services provided to financially indigent patients......... Estimate of services provided on credit that will not be collected............ 2015 $170,000 $97,000 $7,800 2016 $203,000 $110,000 $9,000 2018 $195,000 $103,000 $9,500 $77,000 $7,900 $10,300 $11,700 $6,800 $8,300 Part (a) (0.5 pt * 4 = 2) Use the information above to construct a partial income statement for each year. Higdon Hospital For the years ended December 31, 2015 2016 2017 Gross Patient Service Revenue 2018 i 2018 Deductions from Revenue: Contractual Allowances Provision for Doubtful Accounts Charity Discounts Total Deductions from Revenue Net Patient Service Revenue Part (b) Suppose that, for year 2018, the hospital understated its contractual allowances by $8,800. In other words, the correct amount of contractual allowances should be $100,800. How would this misstatement affect the hospital's income statement? For each item below, indicate whether the item is overstated, understated, or not affected by the misstatement. (i) Gross Patient Service Revenue.......... (ii) Total Deductions from Revenue.... (iii) Net Patient Service Revenue....... (iv) Net Income