Final answer:
The net tuition and fees reported in the Statement of Activities for the private university would be $15,400,000, after subtracting the amounts for graduate assistantships, scholarships, and the provision for bad debts from the total tuition and fees billed.
Step-by-step explanation:
The net tuition and fees that would be reported in the Statement of Activities would be $20,000,000 - $1,200,000 - $1,400,000 - $2,000,000 = $15,400,000.The graduate assistantships and scholarships are subtracted from the total tuition and fees because they are not included as revenue. The provision for bad debt is also subtracted as it represents an estimate of uncollectible tuition and fees.
To calculate the net tuition and fees to be reported in the Statement of Activities for the private university, we begin with the $20,000,000 in tuition and fees billed during the academic year. Next, we need to account for the reductions due to graduate assistantships, scholarships, and the provision for bad debts. The graduate assistantships were awarded in the amount of $1,200,000 and require the provision of services, while the scholarships were awarded in the amount of $1,400,000 and do not require services. Therefore, we subtract both these amounts from the total tuition and fees billed. Additionally, we account for the estimated bad debt of $2,000,000 by subtracting it as well. The resulting calculation is as follows: $20,000,000 - $1,200,000 - $1,400,000 - $2,000,000 = $15,400,000. Therefore, the university will report net tuition and fees of $15,400,000 in the Statement of Activities.