Darlin Hospital, a private not-for-profit hospital, had the following cash receipts for the year ended December 31, 2005:

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Patient service revenue

$300,000

Gift shop revenue

25,000

Interest revenue restricted by donor stipulation for acquisition of equipment

50,000

As a result of these cash receipts, the hospital’s statement of cash flows for the year ended December 31, 2005, would report an increase in operating activities of

  1. $325,000
  2. $375,000
  3. $350,000
  4. $300,000