In: Accounting
l
Presented below are financial statements (except cash flows) for
two not-for-profit organizations. Neither organization has any
permanently restricted net assets.
ABC Not-for-Profit | XYZ Not-for-Profit | |||||||||||||||
Statement of Activities | Unrestricted | Temporarily Restricted |
Unrestricted | Temporarily Restricted |
||||||||||||
Revenues | ||||||||||||||||
Program service revenue | $ | 5,605,000 | $ | 2,236,600 | ||||||||||||
Contribution revenues | 3,333,400 | $ | 747,900 | 3,180,900 | ||||||||||||
Grant revenue | 95,700 | $ | 979,600 | |||||||||||||
Net gains on endowment investments | 17,500 | |||||||||||||||
Net assets released from restriction | ||||||||||||||||
Satisfaction of program restrictions | 450,000 | (450,000 | ) | 374,700 | (374,700 | ) | ||||||||||
Total revenues | 9,405,900 | 393,600 | 5,792,200 | 604,900 | ||||||||||||
Expenses | ||||||||||||||||
Education program expenses | 5,630,600 | 1,551,700 | ||||||||||||||
Research program expense | 1,276,000 | 2,245,400 | ||||||||||||||
Total program service expenses | 6,906,600 | 3,797,100 | ||||||||||||||
Fund-raising | 455,000 | 357,000 | ||||||||||||||
Administration | 670,000 | 1,230,000 | ||||||||||||||
Total supporting service expenses | 1,125,000 | 1,587,000 | ||||||||||||||
Total expenses | 8,031,600 | 5,384,100 | ||||||||||||||
Increase in net assets | 1,374,300 | 393,600 | 408,100 | 604,900 | ||||||||||||
Net assets January 1 | 4,228,000 | 754,500 | 991,600 | 298,700 | ||||||||||||
Net assets December 31 | $ | 5,602,300 | $ | 1,148,100 | $ | 1,399,700 | $ | 903,600 | ||||||||
STATEMENT OF NET ASSETS | ABC Not-for-Profit | XYZ Not-for-Profit | ||||||||||
Current assets | ||||||||||||
Cash | $ | 98,200 | $ | 239,700 | ||||||||
Short-term investments | 247,900 | 92,700 | ||||||||||
Supplies inventories | 30,000 | 140,500 | ||||||||||
Receivables | 224,500 | 82,900 | ||||||||||
Total current assets | 600,600 | 555,800 | ||||||||||
Noncurrent assets | ||||||||||||
Pledges receivable | 475,000 | |||||||||||
Long-term investments | 2,600,000 | |||||||||||
Land, buildings, and equipment (net) | 3,084,800 | 1,988,000 | ||||||||||
Total noncurrent assets | 6,159,800 | 1,988,000 | ||||||||||
Total assets | $ | 6,760,400 | $ | 2,543,800 | ||||||||
Current liabilities | ||||||||||||
Accounts payable | $ | 23,000 | $ | 128,100 | ||||||||
Total current liabilities | 23,000 | 128,100 | ||||||||||
Noncurrent liabilities | ||||||||||||
Notes payable | 178,500 | |||||||||||
Total noncurrent liabilities | 178,500 | |||||||||||
Total liabilities | 201,500 | 128,100 | ||||||||||
Net Assets | ||||||||||||
Unrestricted | 5,625,000 | 1,454,400 | ||||||||||
Temporarily restricted | 933,900 | 961,300 | ||||||||||
Permanently restricted | 0 | 0 | ||||||||||
Total net assets | 6,558,900 | 2,415,700 | ||||||||||
Total liabilities and net assets | $ | 6,760,400 | $ | 2,543,800 | ||||||||
Required:
a. Calculate the following ratios (Assume 365 days):