A private, not-for-profit hospital received a contribution of $40,000 on June 15, 20X8. The donor restricted the contribution to funding research activities currently being performed by the hospital. For the year ended December 31, 20X8, the hospital spent $30,000 of the contribution on research activities. The hospital expended the remaining $10,000 on research activities in January of 20X9.
Refer to the above information. On the statement of cash flows prepared for the year ended December 31, 20X8, the events described would increase net cash flows provided by

Question

Quizplus · Accepted Answer

The contribution is restricted and must be used for research activities. The hospital spent $30,000 of the contribution on research activities in 20X8, which increases net cash flows provided by operating activities by $30,000. The remaining $10,000 was spent in 20X9, so it does not affect the statement of cash flows for the year ended December 31, 20X8.

A Private, Not-For-Profit Hospital Received a Contribution of $40,000 on June