Exhibits 14-11 and 14-12 on present the statements of financial position and activities for a nonprofit, the Code 4 Change. Please calculate the financial ratios listed in problem 14-11 using Excel. In a single workbook, present and interpret these figures. Summarize them in a single table showing both 2017 and 2016, and then for each, define the ratio and discuss what information it conveys in this context.

Exhibit 14-11:

Present the statements of financial position and of activities for Code 4 Change, a fictional organization that provides training in computer programming to the unemployed. For both

2017 and 2016, calculate:

a. common size ratios for the statements of financial position and

statements of activities

b. the current ratio

c. days of cash on hand

d. the debt to equity ratio

e. the total margin

f. the program services ratio

How do you assess Code 4 Change’s overall financial position and

performance? Why? In your assessment, make reference to each ratio you

calculated.

14-11:

14-12:

Please fill out the grey shaded cells:

Excel Cells same as pictures above:

CODE 4 CHANGE
Statements of Financial Position
Common Size Ratios
	December 30, 2017		December 30, 2016
	%	$	%	$
ASSETS
CASH AND CASH EQUIVALENTS		1,909,606		1,044,193
INTEREST AND DIVIDENDS RECEIVABLE		61,244		52,582
CAMPAIGNS’ PLEDGES RECEIVABLE		373,788		358,632
PREPAID EXPENSES AND OTHER		16,244		25,367
INVESTMENTS		10,944,924		9,653,039
TOTAL	0.00%	13,305,806	0.00%	11,133,813
LIABILITIES AND NET ASSETS
LIABILITIES:
Accounts payable — DAV		201,721		171,550
Accounts payable — other		910		1,017
Annuity payment liability		3,857,262		3,679,148
Total liabilities		4,059,893		3,851,715
UNRESTRICTED NET ASSETS		9,245,913		7,282,098
TOTAL LIABLITIES and NET ASSETS	0.00%	13,305,806	0.00%	11,133,813
NOTE:  the denominator needs to be the same for all numbers; in this case, total assets
Interpretation:

 

PART A continued
CODE 4 CHANGE
Statements ofActivities
Common Size Ratios
	December 30, 2017		December 30, 2016
	%	$	%	$
SUPPORT AND REVENUE:
Contributions		4,771,172		2,654,400
Contributions of charitable gift annuities		241,245		178,626
Bequests		2,178,924		32,436,803
Investment income — net		766,580		384,670
Total support and revenue	0.00%	7,957,921	0.00%	35,654,499
EXPENSES:
Program services		6,053,675		34,754,236
Management and general		85,933		75,499
Fundraising		179,277		168,316
Total expenses		6,318,885		34,998,051
CHANGE IN NET ASSETS BEFORE CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS		1,639,036		656,448
CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS		324,779		428,159
CHANGE IN NET ASSETS		1,963,815		1,084,607
NET ASSETS — Beginning of year		7,282,098		6,197,491
NET ASSETS — End of year		9,245,913		7,282,098
NOTE:  the denominator needs to be the same for all numbers; in this case, total support and revenue
Interpretation:

Transcribed Image Text:

EXHIBIT 14-11 Code 4 Change Statements of Financial Position as of March 31, 2017 and 2016 Assets 2017 2016 Cash and cash equivalents $ 1,909,606 $ 1,044,193 Interest and dividends receivable 61,244 52,582 Pledges receivable-net of assessment fees and 373,788 358,632 allowance for uncollectible pledges of $449,162 in 2017 and $464,486 in 2016 Prepaid expenses and other 16,244 25,367 Investments 10,944,924 9,653,039 Total Assets $13,305,806 $11,133,813 Liabilities and Net Assets Liabilities Accounts payable $202,631 $172,567 Annuity payment liability 3,857,262 3,679,148 Total liabilities $ 4,059,893 $ 3,851,715 Unrestricted Net Assets 9,245,913 7,282,098 Total Liabilities and Net Assets $13,305,806 $11,133,813 EXHIBIT 14-11 Code 4 Change Statements of Financial Position as of March 31, 2017 and 2016 Assets 2017 2016 Cash and cash equivalents $ 1,909,606 $ 1,044,193 Interest and dividends receivable 61,244 52,582 Pledges receivable-net of assessment fees and 373,788 358,632 allowance for uncollectible pledges of $449,162 in 2017 and $464,486 in 2016 Prepaid expenses and other 16,244 25,367 Investments 10,944,924 9,653,039 Total Assets $13,305,806 $11,133,813 Liabilities and Net Assets Liabilities Accounts payable $202,631 $172,567 Annuity payment liability 3,857,262 3,679,148 Total liabilities $ 4,059,893 $ 3,851,715 Unrestricted Net Assets 9,245,913 7,282,098 Total Liabilities and Net Assets $13,305,806 $11,133,813

Answer rating: 100% (QA)

b Current ratio current assetscurrent liabilities 2017 2016 Current assets Cash 190960600 104419300 ... View the full answer