Question
3. Shifa Hospital is a not-for-profit initial care facility. Prepare a Statement of Operations for Shifa Hospital using the following information for its calendar year
3. Shifa Hospital is a not-for-profit initial care facility. Prepare a Statement of Operations for Shifa Hospital using the following information for its calendar year ending December 31, 2021: a. Third-parties and direct-pay patients were billed $6,500,000 at the hospital's established billing rates b. The hospital determined that sure of its patients qualified for charity care and that it would not seek to collect $950,000 at established billing rates from direct-pay patients c. The hospital estimated contractual adjustments for the year, including year-end adjustments of $1,600,000 d. The hospital estimated uncollectible amounts from direct-pay patients to be $250,000 e. The hospital received capitation premiums of $2,500,000. It is estimated that the cost of providing this care was $1,800,000 f. The hospital reported salaries and wages of $4,500,000 for the year g. The fair value of investments held by the hospital increased by $25,000 h. The hospital reported interest and dividend income of $100,000 i. The hospital used $375,000 of temporarily restricted resources to purchase capital assets, consistent with the restrictions imposed by the donor j. The hospital reported a depreciation expense of $475,000 k. The hospital used supplies inventories of 365,000 l. The hospital incurred other operating expenses of $275,000
Urgent please
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started