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Bad and Debt of Year of Year $3,811 Use Additional Information from 10-K to explain Linkages Among Financial Statements Community Health Systems operates general acute care hospitals in communities across the United States. The company reports the following information in Schedule Il of its 2017 10-K, SCHEDULE I-VALUATION AND QUALIFYING ACCOUNTS Balance at Acquisitions Balance Beginning Write at End S millions Dispositions Expense offs December 31, 2017, allowance for doubtful accounts $(21) $3,085 $(2,965) $3,910 December 31, 2016, allowance for doubtful accounts 4,151 (369) 2,877 (2.849) 3,810 December 31, 2015, allowance for doubtful accounts (17) 3,200 (2.570) 4,152 Accounts receivable represents the amount customers owe Community Health Systems for services rendered. The balance in the allowance for doubtful accounts is the company's best estimate of the amount that customers will not repay. Community Health Systems balance sheet and income statement reported the following $ millions 518,398 521,275 $22,564 Operating income (los) before tax (1,897) 1,350 Total assets 17.450 21,944 26,861 3,539 2017 2016 2015 Revenue (869) 1. Compute the common-size allowance for doubtful accounts for each year Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). 2017 2016 2015 Common size allowance 2242%* 17.37 % * 15.47% * 2. What conclusion may be drawn by analysts in comparing the common size allowance in 2017 to the previous years? Collecting cash from customers now is more difficult b. On average the firms in the S&P 500 report common-size allowance for doubtful accounts between 3% and 5%, Why might Community Health Systems' ratio be so much higher? Community Health Systems now has: relatively more charges to patients not expected to pay in full- c 1. Compute the common-size bad debt expense for each year. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%) 2017 2016 2015 Common size allowance 1% X 19 X 19 X