The board of trustees for Allen University would like to measure the performance of the university. Refer
Question:
The board of trustees for Allen University would like to measure the performance of the university. Refer to Illustrations 15–7, 15–8, and 15–9 for assistance in calculating the CFI. The ratio scales and weighting factors should be taken from Illustration 15–9.
Required
a. Utilize the financial statements prepared in Problem 15–21 to compute a CFI for Allen University. Note $1,000,000 of the ending net asset with donor restrictions balance is for the permanent endowment, and the bond payable balance is the only long-term debt and relates entirely to plant acquisitions. In addition, all realized and unrealized gains and investment income without donor restrictions relates to working capital investments or endowment payouts.
b. Based on the CFI score you calculated in a, how would you assess the financial health of Allen University?
c. In addition to financial health, are there any other measures of performance the board of trustees should review?
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely