ABC Hospital is a non-profit healthcare organization. Here are financial data for the fiscal year 2023:

Ledgers:

• Patient Services Revenue: $50,000,000
• Salaries and Benefits Expense: $30,000,000
• Supplies Expense: $10,000,000
• Insurance Reimbursements: $15,000,000
• Bad Debt Expense: $2,000,000

Income Statement Requirements:

• Prepare ABC Hospital's income statement for the year ended December 31, 2023.
• Calculate the Operating Income and Non-Operating Revenues/Expenses.
• Determine the Net Income after taxes using a tax-exempt status.

Other Requirements:

• Prepare a Schedule of Functional Expenses for ABC Hospital.
• Discuss the importance of cost allocation in healthcare organizations.
• Analyze how ABC Hospital can improve its financial sustainability in the coming years.