Questions about St. Catherine’s Center for Children (SCC) Financial statements 2009 to 2010

1. Is SCC’s audit opinion unqualified or qualified? Where did you find the information?

2. What method of depreciation does SCC use? Where did you find the information?

3. What percentage of SCC’s Land, Building and Equipment has been depreciated? Where did you find the information?

4. How much does SCC owe to its bank under its operating line of credit agreement? How much did that amount increase or decrease in dollars from fiscal years 2009 to 2010 and from fiscal years 2008 to 2009? Where did you find that information?

5. How much does SCC owe on its long-term debt at the end of fiscal year 2010? How much of SCC’s long-term debt was repaid in fiscal years 2009 and 2010? Where did you find that information?

6. What was the percentage increase or decrease in cash flow from operations between fiscal years 2009 and 2010? Where did you find the information?

7. How much did SCC’s overall cash flow increase or decrease between fiscal years 2009 and 2010? What was the primary reason for that change in SCC’s cash balance? Support your answers with the appropriate numbers from the statements. Where did you find the information?

8. What were SCC’s current ratios in fiscal years 2009 and 2010? Are the current ratios above or below the rule of thumb? Is the trend favorable or unfavorable? Support your answer with the appropriate numbers from the statements and to state what you included as current assets and liabilities. Where did you find the information? (Hint: Current ratio=current assets/current liabilities)

9. How many days of cash did SCC have on hand at the end of fiscal years 2009 and 2010? Is the trend favorable or unfavorable? Support your answer with the appropriate numbers from the statements. Where did you find the information?

10. What was the value at cost of SCC’s additions or deletions of equipment in fiscal years 2009 and 2010? Did the value of equipment at cost increase or decrease? Support your answer with the appropriate numbers from the statements. Where did you find the information?

11. What were SCC’s operating profit margins in fiscal years 2009 and 2010? Is the trend favorable or unfavorable? Support your answer with the appropriate numbers from the statements. Where did you find the information?

(Hint: operating profit margin=change in unrestricted net assets/total unrestricted revenue)

Answer rating: 100% (QA)

Answer 1 SCCs audit opinion is unqualified The information can be found in the Independent Auditors Report 2 SCC uses the straightline method of depreciation The information can be found in Note 2 to ... View the full answer