The statement of cash flows for a government hospital would differ from that of a private not for-profit hospital. The following represent a hospital's inflows and outflows of cash:

• Patient service fees received

• Government grants for operating purposes

• Government grants for specific research programs

• Contribution restricted to construction of a new building

• Salaries and wages

• Supplies

• Interest paid on long-term debt

• Interest paid on short-term operating debt

• Acquisition of capital assets

• Purchases of marketable securities

• Proceeds from sale of marketable securities

• Interest received from investments

• Dividends received from investments

• Proceeds of long-term debt to finance a new building

• Proceeds of short-term borrowings for operating purposes

1. Categorize the cash inflows and outflows as they would be reported in a statement of cash flows, assuming that the hospital is government owned.

2. Do the same, this time assuming that the hospital is a not-for-profit.