The statement of cash flows for a government hospital would differ from that of a private not
Question:
The statement of cash flows for a government hospital would differ from that of a private not for-profit hospital. The following represent a hospital's inflows and outflows of cash:
• Patient service fees received
• Government grants for operating purposes
• Government grants for specific research programs
• Contribution restricted to construction of a new building
• Salaries and wages
• Supplies
• Interest paid on long-term debt
• Interest paid on short-term operating debt
• Acquisition of capital assets
• Purchases of marketable securities
• Proceeds from sale of marketable securities
• Interest received from investments
• Dividends received from investments
• Proceeds of long-term debt to finance a new building
• Proceeds of short-term borrowings for operating purposes
1. Categorize the cash inflows and outflows as they would be reported in a statement of cash flows, assuming that the hospital is government owned.
2. Do the same, this time assuming that the hospital is a not-for-profit.
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis