Due to the gowing population in your city, the board of a Hospital System decided to open a hospital in your community. The name of the hospital is The New Hospital $($NHA$).$ After the first year of operations, the accounting department o NHA provides you with the following financial and accounting information:

The New Hospital provides services to patients during the year. It bills $$500,000$ in total patient services during the year and collects $$375,000$ of this amount before the fiscal year ends. It also collects $$100,000$ from the prior fiscal year for services. New Hospital also incurs $$475,000$ in expenses during the year. It paid out $$400,000$ of this amount before year$-$end and also paid out $$25,000$ from expenses incurred from last year.