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I. (10 Marks) (Preparing a not-for-profit Clinic operating statement) Mahatma Gandhi Clinic is a not-for-profit initial care facility. Prepare a Statement of Operations for Mahatma
I. (10 Marks) (Preparing a not-for-profit Clinic operating statement) Mahatma Gandhi Clinic is a not-for-profit initial care facility. Prepare a Statement of Operations for Mahatma Gandhi Clinic using the following information for its calendar year ending December 31, 2013: a. Third-parties and direct-pay patients were billed K6,500,000 at the Clinic's established billing rates b. The Clinic determined that certain of its patients qualified for charity care and that it would not seek to collect K950,000 at established billing rates from direct-pay patients c. The Clinic estimated contractual adjustments for the year, including year-end adjustments of K1,600,000 d. The Clinic estimated uncollectible amounts from direct-pay patients to be K250,000 e. The Clinic received capitation premiums of K2, 500,000. It estimated that the cost of providing this care was K1,800,000 f. The Clinic reported salaries and wages of K4,500,000 for the year g. The fair value of investments held by th
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