Question

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 Temporarily Unrestricted Restricted XYZ Not-for-Profit Temporarily Unrestricted Restricted $5,655,000 3,363,100 $ 2,187,700 3,111,400 $ 744,800 95,300 $ 820,900 17,700 455, 200 9,491,000 (455,200) 384,900 366,500 5,665,600 (366,500) 454,400 Statement of Activities Revenues Program service revenue Contribution revenues Grant revenue Net gains on endowment investments Net assets released from restriction Satisfaction of program restrictions Total revenues Expenses Education program expenses Research program expense Total program service expenses Fund-raising Administration Total supporting service expenses Total expenses Increase in net assets Net assets January 1 Net assets December 31 5,681,800 1,326,000 7,007, 800 465,300 710,000 1,175,300 8,183,100 1,307,900 4,268,000 $5,575,900 1,523,700 2,204,900 3,728,600 362,000 1,233,000 1,595,000 5,323,600 342,000 831,000 $1,173,000 384,900 738,100 $1,123,000 454,400 224,400 $ 678,800

Answer 1

Please find the below table useful to compute desired results: -

А B C D 1 Particulars ABC XYZ 2 Total Program Service Expenses 7007800 3728600 3 Total Expenses 8183100 5323600 4 Fund Raising 465300 362000 5 Contribution Revenue(unrestricted) 3363100 3111400 6 Contribution Revenue(restricted) 744800 7 Total Current Assets 455300 421400 8 Total Current Liabilities 23000 123400 9 Days 365 365 10 Program Expense =B2/B3 =C2/C3 11 Fund-raising efficiency =B4/(B5+B6) =C4/C5+C6) 12 Working Capital =(B7-BS)* B9/B3 =C7-C8)*C9/C3 Days

End results would be as follows: -

А 1 Particulars 2 Total Program Service Expenses 3 Total Expenses 4 Fund Raising 5 Contribution Revenue(unrestricted) 6 Contribution Revenue(restricted) 7 Total Current Assets 8 Total Current Liabilities 9 Days 10 Program Expense 11 Fund-raising efficiency 12 Working Capital E ABC XYZ Stronger $7.007.800.00 $3,728.600.00 $8.183,100.00 $5,323,600.00 $465,300.00 $362,000.00 $3,363,100.00 $3,111,400.00 $744,800.00 $0.00 $455,300.00 $421,400.00 | $23,000.00 $123,400.00 365 85.64% 70.04% Higher is better ABC 0.1133 0.1163 Lower is better ABC 19 20 Higher is better XYZ 365