46. (Preparing a not-for-profit hospital operating statement) Whitt Valley Hospital is a not-for-profit initial care facility. Prepare a Statement of Operations for Whitt Hospital using the...

46. (Preparing a not-for-profit hospital operating statement)

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, 2012:

1. 
   Third-parties and direct-pay patients were billed $6,500,000 at the hospital's established billing rates
   


2. 
   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
   


3. 
   The hospital estimated contractual adjustments for the year, including year-end adjustments of $1,600,000
   


4. 
   The hospital estimated uncollectible amounts from direct-pay patients to be $250,000
   


5. 
   The hospital received capitation premiums of $2,500,000. It estimated that the cost of providing this care was $1,800,000
   


6. 
   The hospital reported salaries and wages of $4,500,000 for the year
   


7. 
   The fair value of investments held by the hospital increased by $25,000
   


8. 
   The hospital reported interest and dividend income of $100,000
   


9. 
   The hospital used $375,000 of temporarily restricted resources to purchase capital assets, consistent with the restrictions imposed by the donor
   


10. 
    The hospital reported depreciation expense of $475,000
    


11. 
    The hospital used supplies inventories of 365,000
    


12. 
    The hospital incurred other operating expenses of $275,000