16- Revenue and Related Transactions. During
19
its current fiscal year, Evanston General
Hospital, a not-for-profit health care
organization, had the following revenue-
related transactions (amounts summarized
for the year).
1. Services provided to inpatients and
outpatients amounted to $9,600,000, of
which $450,000 was for charity care,
$928,000 was paid by uninsured
patients, and $8,222,000 was billed to
Medicare, Medicaid, and insurance
companies.
2. Donated pharmaceuticals and medical
supplies valued at $265,000 were
received and utilized as general
expenses.
3. Medicare, Medicaid, and third-party
payors (insurance companies) approved
and paid $5,365,000 of the $8,222,000
billed by the hospital during the year
(see transaction 1).
4. An unconditional contribution of
$5,000,000 was received in cash from a
donor to construct a new facility for care
of Alzheimers patients. The full amount
is expendable for that purpose. No
activity occurred on this project during
the current year.
$ 8,981,000
48,800
297,900
36,100
9,363,800
$4,577,500
1,286,420
2,016,660
1,307,120
9,187,700
1,500
9,189,200
174,600
ILLUSTRATION 16-4 Illustration of a Two-Part Statement of Operations
SIERRA REGIONAL HOSPITAL
Statement of Operations
Year Ended September 30, 2017
Unrestricted revenues, gains, and other support
Net patient service revenue
Other revenue
Contributions
Investment income
Total revenues and gains
Expenses and losses:
Nursing services
Other professional services
General services
Fiscal and administrative services
Total expenses
Loss on disposal of equipment
Total expenses and losses
Excess of revenue and gains over expenses and losses
Net assets released from restrictions:
Satisfaction of equipment acquisition restrictions
Increase in unrestricted net assets
Statement of Changes in Net Assets
Year Ended September 30, 2017
Unrestricted net assets (see Part 1 above):
Excess of revenue and gains over expenses and losses
Net assets released from restrictions
Increase in unrestricted net assets
Temporarily restricted net assets:
Contributions
Investment income
Increase in provision for uncollectible pledges
Loss on sale of investments
Net assets released from restrictions
Decrease in temporarily restricted net assets
Permanently restricted net assets:
Contributions
Increase in permanently restricted net assets
Increase in net assets
Net assets at beginning of year
Net assets at end of year
100,000
274,600
$
174,600
100,000
274,600
25,000
77,000
(66,300)
(26,000)
(100,000)
(90,300)
24,000
24,000
208,300
11,708,500
$11,916,800
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