SOLUTION:
Activity statement:
Revenues and support |
|
Donation revenue |
$80,000.00 |
Sales revenue |
$110,000.00 |
Total revenues & support |
$190,000.00 |
Expenses: |
|
Grant Expense |
$50,000.00 |
COGS |
$58,000.00 |
Wage expense |
$90,000.00 |
Interest expense |
$3,000.00 |
Bad debts |
$2,000.00 |
Depr. |
$40,000.00 |
Total expenses |
$243,000.00 |
Decrease in net assets |
-$53,000.00 |
Statement of Financial Position:
Assets |
Liabilities & Net Assets |
||||
Year 2 |
Year 1 |
Year 2 |
Year 1 |
||
Current assets |
Liabilities |
||||
Cash |
$335,000.00 |
$10,000.00 |
Current liabilities |
||
A/R, net of estimated uncollectibles of $2,000 in Year 2 |
$36,000.00 |
$26,000.00 |
Accounts payable |
$27,000.00 |
$27,000.00 |
Wages payable |
$47,000.00 |
$32,000.00 |
|||
Total current liabilities |
$74,000.00 |
$59,000.00 |
|||
Pledges receivable |
$50,000.00 |
$350,000.00 |
|||
Inventory |
$27,000.00 |
$25,000.00 |
Long-term liabilities |
||
Total current assets |
$448,000.00 |
$411,000.00 |
Notes payable |
$320,000.00 |
$270,000.00 |
Total long-term liabilities |
$320,000.00 |
$270,000.00 |
|||
Long-term assets |
|||||
Fixed assets |
Total liabilities |
$394,000.00 |
$329,000.00 |
||
Buildings & Equipment, net |
$325,000.00 |
$350,000.00 |
|||
Total long-term assets |
$325,000.00 |
$350,000.00 |
Net assets |
||
Unrestricted |
$249,000.00 |
$302,000.00 |
|||
Temporary restricted |
$30,000.00 |
$30,000.00 |
|||
Permanent restricted |
$100,000.00 |
$100,000.00 |
|||
Total net assets |
$379,000.00 |
$432,000.00 |
|||
Total assets |
$773,000.00 |
$761,000.00 |
Total equities |
$773,000.00 |
$761,000.00 |
Cah flow statement:
Cash flows from operating activities |
|
Decrease in unrestricted net assets |
-$53,000.00 |
Plus: Expenses not requiring cash: |
|
Depreciation |
$40,000.00 |
Bad Debts |
$2,000.00 |
Other adjustments: |
|
Minus: Increase in accounts receivables |
-$12,000.00 |
Plus: Decrease in pledges receivable |
$300,000.00 |
Minus: Increase in inventory |
-$2,000.00 |
Plus: Increase in wages payable |
$15,000.00 |
Net cash from operating activities |
$290,000.00 |
Cash flows from investing activities |
|
Purchase of PPE |
-$15,000.00 |
Net cash used in investing activities |
-$15,000.00 |
Cash flows from financing activities |
|
Borrowing with notes |
$50,000.00 |
Net cash from financing activities |
$50,000.00 |
Net increase/(decrease) in cash |
$325,000.00 |
Cash at the beginning of year |
$10,000.00 |
Cash at the end of year |
$335,000.00 |
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