Presented below are account balances for Monterey Hospital. In addition, cash transactions for the year ended December 31, 2017, are summarized in the T-account.

ACTIVITY ACCOUNTS _____________________________ December 31, 2017
Debits
Contractual Adjustments ................................................................ $1,100,000
Provision for Uncollectible Accounts ........................................................ 33,500
Operating Expenses-Depreciation .......................................................... 460,000
Operating Expenses-Salaries ..............................................................6,000,000
Operating Expenses-Supplies ............................................................ 2,200,000
Reclassification from Temporarily Restricted
Net Assets (Time Restrictions) ............................................................... 19,600
Net Losses on Investments-Permanently Restricted .......................................... 10,000
Credits
Patient Service Revenue-(patient portion) Unrestricted ................................. 3,156,000
Patient Service Revenue-(third-party portion) Unrestricted ............................. 7,364,000
Income on Endowments-Unrestricted ......................................................... 25,000
Reclassification to Unrestricted Net Assets .................................................... 19,600
Contribution Revenue-Unrestricted ........................................................... 36,000
Contribution Revenue-Endowment .......................................................... 130,000
Contribution Revenue-Temporarily Restricted for Future Years .......................... 25,000

The hospital issued $600,000 of long-term debt during the year and purchased $307,000 of equipment. No fixed assets were sold.
Required:
Using the information above and the Excel template provided, prepare:
A. A Statement of Operations and a Statement of Changes in Net Assets for the year ended December 31, 2017.
B. Statements of Cash Flow assuming:
1. Monterey Hospital is a private not-for-profit.
2. Monterey Hospital is a government-owned hospital?

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BALANCE SHEET ACCOUNTS December 31. 2016 December 31, 2017 Debits Cash Patient Accounts Receivable (net) Third-Party Accounts Receivable (net) Contributions Receivable $1,700,000 510,000 1,190,000 10,000 1,500,000 4,875,000 $2,895,700 592,800 1,383,200 12,500 1,620,000 5,182,000 Property, Plant, and Equipment Credits Accumulated Depreciation Accounts Payable Long-Term Debt Net Assets-December 31, 2016 Net Assets-December 31, 2017 2,107,000 37,500 2,282,000 5,358,500 2,567,000 46,200 2.782,000 6.291,000 CASH (2017) Beginning balance January Collections from patients Collections from third parties 6,070,800 2,191,300 Operating expenses Contributions to endowment Other contributions Investment income Proceeds-LT debt 1,700,000 3,039,700 $6,000,000 Salaries 130,000 58,500307,000 Equipment purchases 25,000100,000 Payment principal LT debt 600,000 130,000 Purchase endowment investments Ending balance December 31 $2,895,700