There are 10 events noted at the bottom which will impact the income statement.

3. Make the change on the appropriate line for the first one.

4. NET INCOME will change automatically. That is the answer to question #1. Record it in Canvas.

5. IMPORTANT - Reverse your entry to return the worksheet to the original worksheet. Check your work as the Net Income line should read ($32,322)

6. Complete the process for the remaining nine entries. Record the revised Net Income. Repeat step #5

1)Salary & Wage Increase

Net Income=

2)New Payor

Net Income=

3) Bank Loan

Net Income=

4)Ended Payor Contract

Net Income=

5) Contribution

Net Income=

6)Contract Labor

Net Income=

7)PPE

Net Income=

8)Union Bonus

Net Income=

9)Raising Charges

Net Income=

10)Malpractice

Net Income=

11)Go back and add all changes to the income statement file. Each item needs to be incorporated in order.

6:10 :)) Back HW #2.xlsx Income Statement ABC Hospital, LTD For the year ended December 31, 2020 Revenue: Net Patient Service Revenue - NPSR Other revenue Total revenues 14,228,970 2,110,077 16,339.0147 Expenses Salaries and wages - Non-union Salaries and wages - Union Employee benefits Contract labor Total Lahor Supplies Purchased services Depreciation Occupancy Malpractice claims Interest Other Total expenses 3,899,671 3,478,902 1,457,253 205,916 9.041.742 2.676,637 1,889,460 635.218 698,198 414,648 195,829 758,103 16,309,835 29,212 -104,958 -75.746 Operating income before other items Other Items Operating Income Nanoperating income: Contributions Investment income Other nonoperating items Total nonoperating income Net Income 220.525 -175,090 -2,011 43.424 -32,3221 1 Salaries and wages increased by 3% for Non-union employees for the full year. 2 New payor entered the market and 100 new patients were admitted to the hospital. The payor reimbursed on a per diem basis and these 10%) patients incurred 380 patient days each at S501.00. 3. The ABC Hospital's bank loan was paid off early with a savings of $26,000. 4 An existing payor's contract ended on November 30, 2020 and the ABC Hospital erroneously kept billing, overstating NPSR by $328,498. 5 On December 31st, a wealth community member dropped off a check for $125,000 with the volunteer at the front desk. The accounting staff didn't see the check when this income statement was prepared. 6 The CORONA Virus resulted and increase in Contract Labor of $13,569 for each month in the last quarter 7. We ran out of PPE and needed to pay the cost plus a premium of 2% on the PPE cost of $50,000 8 On December 31st the Labor Union negotiated amonthly bonus of $37,500 which was retroactive for 5 months 9 On July 1, the prices were raised by 7%. Charged based payors account for 26% of the NPSR and the average discount is 25% 10 Our lawyers settled a malpractice suit on December 30th for $200,000, half of the amount we had reserved