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1. What are the major differencesin recording transactions for a for-profit organization versus anot-for-profit, or are there any?
2. List and record eachtransaction for S. Zee Outpatient Clinic under the accrual basis ofaccounting at December 31, 20X1. then develop a balance sheet as ofDecember 31, 20X1, and a statement of operations for the year endedDecember 31, 20X1.
   • The clinic received a$3,000,000 of unrestricted cash contribution from the community.(Hint: this transaction increases the unrestricted net assetsaccount.)
   • The clinic purchased $2,000,000of equipment. The clinic paid cash for the equipment.
   • The clinic borrowed $1,000,000from the bank a long-term basis,
   • The clinic purchased $1,500,000of supplies on credit.
   • The clinic provided $5,500,000services on credit.
   • In the provision of theseservices, the clinic used $1,000,000 of supplies.
   • The clinic received $500,000 inadvance to care for capacitated patients.
   • The clinic incurred $2,000,000in labor expenses and paid cash for them.
   • The clinic incurred $1,500,000in general expenses and paid cash for them.
   • The clinic received $4,500,000form patients and their third parties in payment of outstandingaccounts.
   • The clinic met $300,000 of itsobligation to capacitated patients in Transaction g.
   • The clinic made a $100,000 cashpayment on the long-term loan.
   • The clinic also made a cashinterest payment of $50,000.
   • A donor made a temporarilyrestricted donation of $100,000 to be used for operations.
   • The clinic recognized $200,000in depreciation for the year.
   • The clinic recognized $500,000of patient accounts would not be received.
3. How do capital structurerations and liquidity rations differ in providing insight into anorganization’s ability to pay debt obligations?
4. Identify and explain twosituations where an organization might have increasing activityrations but declining profitability.