Please answer the question based on the case study.

Question 6/7 1 point Refer to the adjusting entry for "Depreciation and Amortization" of +850 in the Operating Section of the Cash Flow Statement. What is the interpretation of this? (Check all that apply) Depreciation provided 850 of cash because it lowers your tax bill by that amount O Depreciation provided 850 of cash O The firm sold equipment for 850 in cash O Depreciation expense lowered net income during the year by 850 so the +850 on the cash flow statement offsets that to show there is no net change in cash attributable to depreciation NEXT Done d18ky98rnyall9.cloudfront.net 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. d18ky98rnyall9.cloudfront.net CONSOLIDATED BALANCE SHEETS Dollars ASSETS Ac Der L e sse for del and December 31.) 1031 coach Total Defendices Purtynd og cost, les m e d deprecated martin Selecember 2 0 12 December 31, 2011) Goodwill Othernet , cost, les accumulated m in 5772 De r med m5772 Total LIABILITIES AND EQUITY Curreliabilities: Cup olongtem debe Accounts payable Accrued compensation and benefits Professional and general liability Accrued inimest payable L es held for Accrued legal settlement Char l iabilities Total curreliabilities Legem deblocum potion Professional and generall y reserves Defined plan obligations Defend income taxes Other long-term itties Total Habilities Comments and contingencies Redem cering interests in equity of busines Equity Shareholderseguit Cow o ck, s pava wuthorized 262.500.000 shares. 14.106.349 hares De 31.0 1 .20.454 shares December 23 C Additional paid in capital Accued other compache lo Accedi o cin . 4.430..50 4359 shares December 31, Tatahari Nering December 31, 2012 Total Tatalia 018ky98rnyall9.cloudfront.net CONSOLIDATED STATEMENTS OF OPERATIONS Dollar el Nel per tears in rea Operating pe l iatamiliaries Fletic health recordin gs Impairmand i ng charges adquisi ted costs Litigation and investigation costs Gaison sales consolidation and deconsolidation of facilities Localy chment of debe Investment camias Net income from continuing operaties, before income taxes SEINEEN19 Net Income from continuing operaties, before discontinued operations Nusprawn Litigation and investigation tests benefit Income tax benefit expense) Net income dos from discontinued operations disky98rnyall.cloudfront.net HD, INC CONSOLIDATED STATEMENTS OF CASH FLOWS re predberg (151) tode Geos quity is coming ou t affiliates.net of disti Amics of the disco che cost Natar laa adiatimandra d Mahaane ps in Accouche le d other contacts Acope wespend there is Paymes for resturing charges ag r eed costs, and litigation and Matr ila auratitisatirsamtaardaarai 1691) (16) alatiaalaram C Nel cash provided by operating acties e ws from resting activities Purchases of property and equipment continuing operations Purchase of u s joint ventinis, net of cash acquired Proceeds from sales of facilities and other acts (117) 442) 5:31 - Basal 332139 2 .3.2.-31 23 Jae-Beam Chews from financing activities: Repayments of homens under credit facility Proceeds bewings under facility Repayments of other bewings Proceeds from other bowwings Repurchases of common stock Debiance costs Diabutis paid to contains Procedemencongines Purchase of co n g interest Procesom seniofactions Obimnet Nel cash provided by financing activities Neti s ch and cash equivalent Cash and ch ivalents at heining of period C andach w dal pred Supplemental disco h a nc capital in d18ky98rnyall9.cloudfront.net HCD, INC-NOTES TO FINANCIAL STATEMENTS NO BPD Medic Medic herhewe herry de C Rov e r the radio n ice Medican and Medicaid program som promet payment Because the d eep Medic Medium pledge themed by me Revendermaged care plans are based i m ming termine per perdie d o or and other mer . These res t o and dit by the which can even years before they are completely rew T he panele fupr a individual patients We also provide charity came to patients who are financially wh o pay for the healthcare services they receive Me p els who qualify for charity charged a nd for service received to cap. cept for the demam , policy is not to purus collection of amount determined to qualify as charity came there, we do not report the wens in nepring w i ns for doufles Patience from Comer's Medical Eligibility Program screen patients in the determine whether the pasmet elity requirements for financial s e programs. They also expedite the process of applying for these government programs d18ky98rnyall9.cloudfront.net operating even before prision for det cents from continuing The table below shows the sources of operations General Hospital 1945 145 14? Medicaid Managed care Indemnity w ay and other Acute care hospitals other revenue 1,621 1.726 1.561 Other operations Nel pering for provision for de fle s S20111790 d18ky98rnyall9.cloudfront.net Provision for Dowful Account henry Medical Active Labor ACENTALA EMTALA is a maattaiana adaiththalained in dhew . Action o datals - die h o o k with these payers to hide and timely come for There t her of the volume of the emergency to collection These face changed when i t collectie de anderestimati d18ky98rnyall9.cloudfront.net 8 of 8 whethe r des The Dead Mind New paye Managed care Sud Spa aana Estimated future movies s and other Total Hospital Ambulatory Care Total discu s $ 3.928 5 1,831 21 87 204 w A significant portion of our provision for debtful accounts relates to self-pay patients, as well as co-pays and ded e s wed to us by pics within Collection of accounts receivable has bem a key of focus particularly over the past year. A December 31, 202, cur Hospital Operations and other ment collectie w w approximately 26.1%. Our self-pay collection rate includes payments made by patients, including copy deductes pidly pets within ou r herom spy patients and co-pays and deductibles wed to us by patients with c heew1.2013. a 10 de orice well pay collection many which we beliee a y changeval is feble we justment for de so m $9 million s Payment pressure from managed car pay also affects our provision for doubtful account. We typically e ongoing managed care payment delays and disputes however, we continue to work with these payers to obtain adequate and timely for v ices Our estimated Hospital w h ere collection rate from care perswapp y 97 December 31, 2012 We manager for del costs using hospital-specific pels and benchmarks whi c h collections pousservice cash collections, (3) accounts receivable days outstanding CAR Daysand (4) receivable by aging category. The following tables present the approximate aging by payer of our accounts receivable from the conting prof i l Or d er of 2.725 bin 52 578 in December 31. 2012 and 20. rectively g e t yake wakati wowances of 514 million and he r 2012 and 20 . respectively M 0-60 days SI 121-1 days Over 10 days