Information from the 2018 Form 990 and the 2019 audited financial statements for Feeding America follows. Although Form 990 indicates it is for 2018, it is actually for the period July 1, 2018, to June 30, 2019, the same time period as the 2019 audited financial statement. Use the following information to complete the exercise.

Required

a. Compute the following performance measures using the Form 990 data presented in this exercise and comment on what information they convey to a potential donor without comparing them to prior years or other comparable agencies.

1. Current ratio—liquidity.

2. (Revenues – expenses)/expenses—going concern.

3. Program expenses/total expenses—program expense efficiency.

4. Fund-raising expenses/public support—fund-raising efficiency.

b. Using the audited financial statements provided in this exercise, calculate the same ratios listed in requirement a. Comment on any differences.

c. Discuss the advantages of analyzing financial performance using audited  annual financial statement information versus IRS Form 990 information.

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Form 990 (2018) Part VIII Amounts Contributions, Gifts, Grants and Other Similar Program Service Revenue FEEDING AMERICA, 2018 FORM 990 (PARTS VIII, IX, AND X) FEEDING AMERICA Statement of Revenue Check if Schedule O contains a response or note to any line in this Part VIII (A) Total revenue 1 a Federated campaigns b Membership dues c Fundraising events d Related organizations e Government grants (contributions) f All other contributions, gifts, grants, and similar amounts not included above с d g Noncash contributions included in lines 1a-1f: $ h Total. Add lines 1a-1f 2 a FOOD PROCUREMENT REV. b MEMBER FEES CONFERENCE REVENUE e f All other program service revenue g Total. Add lines 2a-2f 1a 1b 1c 1d 1e 1f 2,756,779,556. 2,644,151,273. Business Code 900099 900099 900099 2,756,779,556. 16,088,992. 5,380,719. 1,160,054. 22,629,765. (B) Related or exempt function revenue 16,088,992. 5,380,719. 1,160,054. 36-3673599 (C) Unrelated business revenue Page 9 X (D) Revenue excluded from tax under sections 512-514