Case 3.1: South Pacific Hospital Key concept: Recording transaction data and updating nonprofit financial statements he South Pacific Hospital, a nonprofit entity, has been experiencing increasing operating revenues and improved financial performance. The most recent sum- mary operations statement and balance sheet are shown here: South Pacific Hospital Balance Sheet December 31, 2015 and 2014 2015 2014 Assets Current assets Property, plant, and equipment Total assets $21,000,000 64,000,000 $85,000,000 $18,000,000 63,000,000 $81,000,000 Liabilities and net assets Liabilities Current liabilities Bonds payable Total liabilities or $18,000,000 25,000,000 43,000,000 $13,000,000 30,000,000 43,000,000 42,000,000 Net assets Unrestricted net assets Total liabilities and net assets 38,000,000 $81,000,000 $85,000,000 South Pacific Hospital Operations Statement for Year Ended December 31, 2015 $96,000,000 Revenues 92,000,000 Expenses Operating income $4,000,000 Summary transaction data for the entire saction data for the entire fiscal year 2016 follows: nt was collected 1. The hospital earned $10 Spital earned $100.000.000 in revenues, of which 95 percent was colle in cash and 5 percent remained in receivabi ercent remained in receivables and uncollected. 0. of which all but $4,000,000 has been 2. Operating expe paid by fiscal year-end. 4. $2,000,000 of new equipment was purcha A $5,000,000 payment on the principal of the bonds payable was made. ew equipment was purchased for cash. Assignment onoring any other Update the financial statements for the 2016 transa anges in the accounts or adjusting entries. Prepare the following: 1. A fiscal 2016 operations statement 2. A fiscal 2016 cash flow statement using the assumption that all 2014 and 2015 current assets were held in the form of cash and cash equivalents 3. A December 31, 2016, balance sheet