Summary transaction data for the entire fiscal year $2016$ follows:

The hospital earned $$100,000,000$ in revenues, of which $95$ percent was collected

in cash and $5$ percent remained in receivables and uncollected.

Operating expenses totaled $$95,000,000,$ of which all but $$4,000,000$ has been

paid by fiscal year$-$end.

A $$5,000,000$ payment on the principal of the bonds payable was made.

$$2,000,000$ of new equipment was purchased for cash.

Assignment

Update the financial statements for the $2016$ transaction data while ignoring any other

possible changes in the accounts or adjusting entrics. Prepare the following:

A fiscal $2016$ operations statement

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

A December $31,2016,$ balance sheetPart III: Understanding Financial Statement Preparation and Accounting Adjustmer

Case $3\mathrm{.}1$: South Pacific Hospital

Ko concopt: Recording transaction data and updating nonprofit financial satrements

T

he South Pacific Hospital, a nonprofit entity, has been experiencing increasing operating revenues and improved financial performance. The most recent summary operations statement and balance sheet are shown here:

$\backslash$table$[[\backslash$table$[[$South Pacific Hospital$],[$Balance Sheet$],[$December $31,2015$ and $2014]],],[,2015,2014],[$Assets$,,],[$Current assets,$$21,000,000,$$$18,000,000],[$Property$,$ plant, and equipment,$64,000,000,63,000,000],[$Total assets,$$85,000,000,$$$81,000,000],[$Liabilities and net assets,,$],[$Liabilities$,,],[$Current liabilities,$25,000,000,30,000,000],[$Bonds payable,$43,000,000,43,000,000],[$Total llabilities,,$],[$Net assets,$$82,000,000,38,000,000],[$Unrestricted net assets,,$],[$Total liabilities and net assets,,$]]$

$\backslash$table$[[\backslash$table$[[$South Pacific Hospital$],[$Operations Statement$],[$for Year Ended December $31,2015]]],[$Revenues$,$$$96,000,000],[$Expenses$,92,000,000],[$Operating income,$$4,000,000]]$