Please answer the following questions in the pictures attatched. Please write out each answer in full.

financial statements

X Question 1/11 1 point How much are HCD's total assets at the end of year 20x2? (in millions) $716 $21,226 O $24,701 $23,682 NEXT Question 2/11 1 point 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? O Accounts Receivable O Goodwill O Long-term Debt O Other Intangible Assets NEXT X Question 3/11 1 point What business activity causes Goodwill to be recognized on a balance sheet? O Charitable Contributions O Profitable Operations O Treating Customers Well O Acquisitions of other Businesses NEXT X Question 4/11 1 point What is HCD's largest liability on their balance sheet at the end of year 20x2? O Long-Term Debt O Property and Equipment O Accounts Payable O Additional Paid in Capital NEXT Question 5/11 1 point 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? O HCD has overdrawn its bank account HCD has been incurring more losses than profits over its lifetime O HCD owes a lot of back taxes O HCD is bankrupt NEXT Question 6/11 1 point How much was HCD's Net Income for year 20x2? (in millions) O $181 $76 O $176 $1219 NEXT X Question 7/11 1 point What is HCD's largest Operating Expense during year 20x2? O Interest Expense O Depreciation and amortization O Salaries, wages, and benefits O Supplies NEXT X Question 8/11 1 point 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) O Revenue in 20x2 was 21,070 Some of these revenues probably won't be collected O Revenue in 20x2 was 19,611 Revenues have been growing over time NEXT Question 10/11 1 point 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? O 10.0% O 0% O 7.4% O 6.9% NEXT Question 11/11 1 point 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) O Medicare O Self-pay uninsured O Managed Care O Medicaid NEXT HCD Inc Excerpts From Financial Statements This document includes excerpts from a real set of financial statements from a company in the healthcare sector. The firm describes itself as a diversified healthcare services company. They operate regionally focused, integrated healthcare delivery networks, primarily in large urban and suburban markets in the United States. At the end of their most recent fiscal year, they operated 79 hospitals, 20 short-stay surgical hospitals, over 470 outpatient centers, and nine facilities in other countries. The following pages include the Balance Sheet, Income Statement (they call it the Statement of Operations), and Statement of Cash Flows. Parts of their footnotes describing their revenues and issues related to the collectability of their accounts are also included. HINC CONSOLIDATED BALANCE SHEETS ASSETS Cerra Cand gives 2704 to opet Ne Authod for sale Tataras Defined in Property 154 December 31, 23 Dec 31.01) Goodwill Other 5772 December 31, 20 and 56:59 Dec 31.01) 247957051 SESSE LIABILITIES AND EOLITY Curria Curent portion of legende Accounts payable Accred c estion and benefits Professional and general liability Accrued news payable Liabilities held for sale Accrued legalement costs Other cunt liabilities Total current liabilities Long-term debent of current portion Professional and gemellability Defined benefit plan obligations Defned income taxes Other long liabilities Total abilities Com e and contingencies Radi ocontrolling interest in equity of consolidated wide Equity Shareholders Common stock, soos para autod 2.500.000 1103 shares December 31, 2012 and 146.420.454 December 31.01 Additional paid in capital Accumulated other compenseless A ddict Cooky. .6050 December 48.425.29 shares December 31, 2011 Tataharchuty N ig 2191 4 ) Total Total de HCD, INC CONSOLIDATED STATEMENTS OF OPERATIONS Dollars in Millions 21.070 $ 20.1115 17.905 1921 18.414 16.603 2630 9356 3.124 4891 (32) 22063 4.555 (72) (104) 202 Net operating revenus: Net operating revenues before provision for doubtful accounts Les Provision for doubtful accounts Net operating revenues Equity in varnings of unconsolidated affiliates Operating expS Salaries, wages and benefits Supplies Other operating expenses.net Electronic health record incentives Depreciation and amontiration Impairment and restructuring charges, and acquisition-related costs Litigation and investigation costs Gains on sales, consolidation and deconsolidation of facilities Operating income inted expense Loss from early extinguishment of dicht Investment camings Net income from continuing operations, before income taxes Income tax expense Net income from continuing operations, before discontinued operations Discontinued operations: Net loss from operations Litigation and investigation costs) benefit Income tax benefit cxpense) Net income dess) from discontinued operations Net income 1219 (979) 245 alle CONSOLIDATED STATEMENTS OF CASH FLOS A r ctic Cat provided bring av P odobacco Dedice Locytingumo de Case de d ate of facilities Equity in cafu c ode Amodel disco d e co Per comes from discontinued operations Othernet Chelsefremur Account able was dather contacts i ties Accounts payable cred expenses and other c Other long-term abilities Payment for restoring charges, segui n te costs and Netcach wwdieperang activides fremd e deperat i ng in Netcash provided by operating activities Cashflows from investing activities Purchase of p urty and equipment continuing operations Purchase of business or joint ventures , net of cash ired Proceeds from sales of facilities and others ceeds from sales of marke t ing investments and other assets Purchase of equity investments Others Other Nach din i ting activiti Chews from incing activiti Repayments of herwings under credit facility Paediatro horings under codi facility Repayments of other homewings Paceeds from other home wings Rapuchas of common wock 29***8 1987** jees: ( 91 998899 $123 ***** ** 23" [E388 3823 21**** 93 94819-18* Dupadors Peces of controlling in Purchase of controlling Poce n iofack options Other Net provided by financing activities Netic in cash and choquants Catamilcalenday a paai Cuadesh water poteftate HCD, INC - NOTES TO FINANCIAL STATEMENTS Net Operating Revenues Before Provision for Doubtful Accounts We recognize net operating revenues before provision for doubtful accounts in the period in which our services are performed. Net operating revenues before provision for doubtful accounts primarily consist of net patient service revenues that are recorded based on established billing rates (i... gross charges), less estimated discounts for contractual and other allowances, principally for patients covered by Medicare, Medicaid, managed care and other health plans, as well as certain uninsured patients under our Compact with Uninsured Patients (Compact") a la united discount and clarity programs Hospitals are typically paid amounts that are negotiated with insurance companies or are set by the government Revenues under the traditional fee-for-service Medicare and Medicaid programs are based primarily on prospective payment systems. Because the laws, regulations, instructions and rule interpretations governing Medicare and Medicaid reimbursement are complex and change frequently, the estimates recorded by us could change by material amounts. Revenues under managed care plans are based primarily on payment terms involving predetermined rates per diagnosis, per-diem rates, discounted fee-for-service rates and/or other similar contractual arrangements. These revenues are also subject to review and possible audit by the payers, which can take several years before they are completely resolved. The payers are billed for patient services on an individual patient basis. dit by the payers, which and or other similar contient terms involving We also provide charity care to patients who are financially unable to pay for the healthcare services they receive. Most patients who qualify for charity care are charged a per-diem amount for services received, subject to a cap. Except for the per diem amounts, our policy is not to pursue collection of amounts determined to qualify as charity care; therefore, we do not report these amounts in net operating revenues or in provision for doubtful accounts. Patient advocates from Conifer's Medical Eligibility Program screen patients in the hospital to determine whether those patients meet eligibility requirements for financial assistance programs. They also expedite the process of applying for these government programs. The table below shows the sources of net operating revenues before provision for doubtful accounts from continuing operations: Years Ended December 31. S S General Hospitals: Medicare Medicaid Managed care Indemnity, self-pay and other Acute care hospitals - other revenue Other: Other operations Net operating revenues before provision for doubtful accounts 3,374 1,346 10.126 1,621 3.403 1.451 10,098 1.726 63 3.395 1,482 9,027 1.561 S3 21 4.582 21,070 3,370 20,111 2.390 17,908 $ $ $ Provision for Doubtful Accounts Although outcomes vary, our policy is to attempt to collect amounts due from patients, including co-pays and deductibles due from patients with insurance, at the time of service while complying with all federal and state statutes and regulations, including, but not limited to, the Emergency Medical Treatment and Active Labor Act ("EMTALA"). Generally, as required by EMTALA, patients may not be denied emergency treatment due to inability to pay. Therefore, services, including the legally required medical screening examination and stabilization of the patient, are performed without delaying to obtain insurance information We provide for an allowance against accounts receivable that could become uncollectible by establishing an allowance to reduce the carrying value of such receivables to their estimated net realizable value. Generally, we estimate this allowance based on the aging of our accounts receivable by hospital, our historical collection experience by hospital and for each type of payer over a look back period, and other relevant factors. A significant portion of our provision for doubtful accounts relates to self-pay patients, as well as co-pays and deductibles owed to us by patients with insurance. Payment pressure from managed care payers also affects our provision for doubtful accounts. We typically experience ongoing managed care payment delays and disputes; however, we continue to work with these payers to obtain adequate and timely reimbursement for our services. There are various factors that can impact collection trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the volume of patients through our emergency departments, the increased burden of co-pays and deductibles to be made by patients with insurance, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and our estimation proce patient ce pays and deductibles. The table below shows the met accumsecevable and allowance for doubtful accounts by payer at December 31, 2012 and December 31. 21: Before (14) (14) 1.965 126 1.589 Medicam Medicaid Netcost report settlements payable and valuation allowances Managed care Self payuninsured Self-pay balance after insurance Estimated future recoveries Other paye Total Hospital Operations and other Ambulatory Care Total discontinued operations 42 1.715 509 205 144 211 Sale B 3.699 3.406 3.925 S 1331 2.397 $ 3.591 887 52.704 A significant portion of our provision for doubtful accounts relate to sell pay patients, as well as co-pays and deductibles owed to us by patients with insurance Collection of accounts receivable has been a key area of focus, particularly over the past several years. At December 31, 2012. our Hospital Operations and other ment collection rate on self.pay accounts was approximately 26.1%. Our self-pay collection includes pay s made by patients, including copy and deductibles paid by patients with insurance. Based on our account a ble from self patients and co-pays and deductibles owed to us by patients with insurance at December 31, 2012. a 10 decrease or increase in our self-pay collection rate, or approximately 3%, which we believe could be a reasonably likely change would result in an unfavorable or favorable adjustment to provision for doubtful accounts of approximately 59 million Payment pressure from managed care payers also affects our provision for doubtful accounts. We typically experience ongoing managed care payment delays and disputes, however, we continue to work with these payers to obtain adequate and timely reimbursement for our services. Our estimated Hospital Operations and other segment collection rate from managed career was approximately 97. December 31, 2017 We manage our provision for doubtful accounts using hospital-specific goals and benchmarks such as total cash collections, (2) point-of-service cash collections, (3) accounts receivable days outstanding CAR Daysland (4) accounts receivable by aging category. The following tables present the appoint ing by payer of our ne accounts receivable from the continuing operations of our Hospital Operations and other woment of $2.725 billion and $2.578 billion at December 31. 20x2 and 20x1, respectively, excluding cost report settlements payable and valuation allowances of $14 million and $42 million at December 31, 20x2 and 20. respectively Waagd 0.60 days 61-120 days 121-INO days Over 10 days Total 100% 100%