Review the nancial statements of the Lance Arm strong Foundation for 2011 as presented in Table 12-8.

Review the financial statements of the Lance Arm strong Foundation for 2011 as presented in Table 12-8. 1. Comment as best you can (even in the absence of guide lines as to what constitutes norms for comparable foundations) on the fiscal strength of the foundation as of December 31, 2011 with respect to:

a. Liquidity

b. Burden of debt relative to assets

c. Adequacy of available resources to meet expenditures

d. Current fiscal performance as indicated by surpluses or deficits

e. Riskiness of revenue stream

2. Through the Foundation's Live Strong program, it has promoted cancer awareness by partnering with community programs, the YMCA, outreach and education and other avenues. Thus the foundation's contributions and sales of merchandise (''program merchandise and services'') has increased dramatically in recent years. The merchandise sold included the ubiquitous yellow ''Live Strong'' bracelets intended to promote cancer awareness. In light of recent controversies concerning the legitimacy of Armstrong's Tour de France victories, what questions might you raise regarding the ability of the foundation to sustain the 2011 and 2010 levels of revenues? What are the risks? (Note: This question was originally written before Lance's medals were nullified.)