Answer the following question:

1. Does the MMF own or rent its building facilities? How do you know?
2. What percentage of MMF's net assets were restricted on December 31, 2000?
3. The total insurance expense for MMF was $4,152 in 2000. How much of the insurance expense did MMF attribute to program expenses?
4. Calculate the return on total assets (ROA) for years 1999 and 2000. Use the formula: Return on total assets = Increase in total net assets/total assets.
5. Is this trend in the ROA favorable or unfavorable? Explain.
6. Calculate the days of cash on hand ratio for year 2000.

Use the formula: Days of cash on hand = Cash/[(operating expenses - depreciation)/365].

7.Does the days of cash on hand ratio indicate a liquidity problem? Explain.

8.Calculate the Average Grant Collection Period for the years 2000 and 1999 using the following formulas:

Grants receivable turnover = Total Grant Revenue/Grants Receivable

Average grant collection period = 365/Grants Receivable Turnover

9.Do the values of the average grant collection period warrant concern over the collection procedures of MMF's grants? Explain.

10.How much cash did MMF borrow in 2000? Justify your answer

11.MMF has an asset called 'Due from MountainMade' on its 2000 balance sheet. Why is the "due from" terminology used for this asset rather than "accounts receivable

12.MMF had negative cash flows from operating activities in 1999. A primary reason for this negative cash flow is:

Select one:

a. A large increase in grants payable

b. A large decrease in operating liabilities

c. A large decrease in net assets

d. The replacement of damaged equipment

13.True or False? MMF would classify a T-bill with a six month maturity as a cash equivalent. Justify your answer.

14.In 1999 MMF had a grant receivable of $40,500 from the Charles Stewart Mott Foundation. Was the grant successfully collected in 2000? How do you know?

15.MMF collects a 10% origination fee on member loans. Why is the fee recorded as a liability rather than revenue and support?

16.Calculate the Program services ratio for MMF in 2000. Use the formula: Program services ratio = Program expenses/total expenses.

17.Analyze MMF's financial statements and notes to the statements and identify any (1) financial strengths/advantages and (2) any potential areas of concern. In doing so, you may wish to calculate and report on some ratios and their trends.