Q.2 Whitt Valley Hospital is a not-for-profit initial care facility. Prepare a Statement of Operations for Whitt Hospital using the following information for its calendar year ending December 31, 2016:

Third-parties and direct-pay patients were billed $6,500,000 at the hospital's established billing rates

The hospital determined that certain of its patients qualified for charity care and that it would not seek to collect $950,000 at established billing rates from direct-pay patients

The hospital estimated contractual adjustments for the year, including year-end adjustments of $1,600,000

The hospital estimated uncollectible amounts from direct-pay patients to be $250,000

The hospital received capitation premiums of $2,500,000. It estimated that the cost of providing this care was $1,800,000

The hospital reported salaries and wages of $4,500,000 for the year

The fair value of investments held by the hospital increased by $25,000

The hospital reported interest and dividend income of $100,000

The hospital used $375,000 of temporarily restricted resources to purchase capital assets, consistent with the restrictions imposed by the donor

The hospital reported depreciation expense of $475,000

The hospital used supplies inventories of 365,000

The hospital incurred other operating expenses of $275,000