Question

The 2018 Income Statement and Balance Sheet of Tampa Clinic, a not-for-profit organization, are presented below Tampa Clinic Income statement Year Ended December 31, 2018 Operating Revenues: Patient service revenue Less provision for bad debts Net patient service revenue Other revenue Net operating revenues $524,630 (27.630) $497,000 10,000 $507 000 Expenses: Salaries and benefits Supplies Insurance Depreciation Interest Total expenses Operating income $231,950 76,050 16,700 8,000 41,000 9373,700 $133,300 Nonoperating income Investment income Net income 700

Answer 1

Description	Amount	Amount
Cash flow from operating activity		156,300
Net Income	136,000
Less Investment income	(2,700)
Add non cash expense
Depreciation	8,000
Provision for bad debt	27,630
Adjustment for change in working capital
Change in AR	(17,630)
Change in inventory	(9,000)
Change in AP	16,000
Change in Accrued Liability	(2,000)
Cash flow from Financing activity		110,000
Issue of Debt	110,000
Cash flow from Investing activity		(244,300)
Purchase of long term investment	(27,000)
Purchase of PPE	(220,000)
Investment income	2,700
Total of above		22,000
Opening cash balance		33,000
Closing Cash balance		55,000
	In BS	55,000
	Variance	-
Opening AR	30,000
Less bad debt provision	(27,630)
Total	2,370
Less Closing AR	20,000
Incresae in AR	17,630