Part 3

Guil College, a private not-for-profit college, received the following cash inflows.
$400,000 from students for tuition. 
$200,000 from a donor who stipulated that the money be invested indefinitely and the earnings used for student scholarships.
$100,000 from a donor who stipulated that the money be spent according to the wishes of the Board of Trustees.

Which amounts of these cash flows should be shown on the cash flow statement as cash from operating activities?

• $700,000

• $400,000

• $600,000

• $500,000

On December 30, 19X4, Leigh Museum, a not-for-profit organization, received a $7,000,000 donation of Day Co. shares with donor stipulated requirements as follows:

Shares valued at $5,000,000 are to be sold with the proceeds used to erect a public viewing building.

Shares valued at $2,000,000 are to be retained with the dividends used to support current operations.

Leigh adopted of FASB Statement No. 117, Financial Statements of Not-for-Profit Organizations. As a consequence of the receipt of the Day shares, how much should Leigh report as temporarily restricted net assets on its 19X4 statement of financial position?

• $0

• $2,000,000

• $5,000,000

• $7,000,000

CIBA, a non-profit performing arts organization, received a contribution of a term endowment and a regular endowment. These endowments should be reported on the statement of activities as:

Term Endowments ------ Regular Endowments

• Permanently restricted, Permanently restricted

• Temporarily restricted, Permanently restricted

• Temporarily restricted, Temporarily restricted

• Unrestricted, Temporarily restricted

Vista, a voluntary health and welfare organization, received a donation of $100,000 to be spent in accordance with the wishes of the institution’s Board of Trustees. This donation should be reported on the statement of activities as:

• Unrestricted revenue

• Other income – gifts

• Temporarily restricted revenue

• Permanently restricted revenues

Ellen College, a private not-for-profit institution, received a $100,000 grant for faculty research in 20x1. The grant money was not spent until 20x2. For 20x1, Ellen College should report the contribution as:

• a. Unrestricted revenue

• b. Temporarily restricted revenue.

• c. Other operating revenue.

• d. Other non-operating revenue.

An NPO hospital has the following account balances:

Amount charged to patients $500,000

Revenue from newsstand 15,000

Undesignated gifts 40,000

Contractual adjustments 70,000

Interest income 12,000

Salaries expense – nurses 120,000

Bad debts 8,000

What is the hospital’s net patient service revenue?

• a. $422,000

• b. $430,000

• c. $500,000

• d. $540,000

Home Care, Inc., a nongovernmental voluntary health and welfare organization, received two contributions in 2003. One contribution of $250,000 was restricted for use as general support in 2004. The other contribution of $200,000 carried no donor restrictions. What amount should Home Care report as temporarily restricted contributions in its 2003 statement of activities.

• 450,000

• 250,000

• 200,000

• 0

The Weyman Hospital, a private, not-for-profit institution, reported the following information:

Gross patient service revenue $1,000,000

Allowance for discounts to hospital employees 20,000

Bad debt expense 40,000

Contractual adjustments 100,000

What amount should the hospital report as net patient service revenue?

• 840,000

• 900,000

• 880,000

• 980,000

A private not-for-profit hospital provided $150,000 in charity care for the current year. The hospital should report this charity care as

• Net patient service revenue of $150,000 and patient care expense of $150,000.

• Net patient service revenue of $150,000 on the statement of operations.

• Only in the notes to the financial statements.

• As an unpaid accounts receivable on the balance sheet.

The Johnson Hospital, a private not-for-profit hospital, received the following revenues in the current year:

Proceeds from sales of the Hospital’s flower shop $60,000

Dividends and interest revenue not restricted $20,000

Cash contributions for the renovation of the children’s ward in the Hospital $200,000

Which of these amounts should be reported as other revenues and gains (other revenue) on the Statement of Operations?

• 280,000

• 60,000

• 80,000

• 260,000