PROBLEM 19-1 Statement of ActivitiesHospital The following events were recorded on the books of Mercy Hospital for the year ended December 31, 2012. 1. Revenue from patient services totaled $16,000,000. The allowance for uncollectibles was established at $3,400,000. Of the $16,000,000 revenue, $6,000,000 was recognized under cost reimbursement agreements. This revenue is subject to audit and retroactive adjustment by third-party payers (estimated adjustments are included in the allowance account). 2. Patient service revenue is accounted for at established rates on the accrual basis. 3. Other operating revenue totaled $346,000, of which $160,000 was from specific purpose funds. 4. Mercy received $410,000 in unrestricted gifts and bequests. They are recorded at fair market value when received. 5. Endowment funds earned $160,000 in unrestricted income. 6. Board designated funds earned $82,000 in income. 7. Mercys operating expenses for the year amounted to $13,370,000. This included $500,000 in straight-line depreciation. Required: Prepare a statement of activities for Mercy Hospital for the year ended December 31, 2012.