Question $13(14$ points$)$

Healthy Kids is a not$-$for$-$profit organization that educates children about the importance of increased physical activity with the goal of stimulating behavioral change. Healthy Kids has asked you to help it analyze its financial health for FY $2020,$ which ended on August $31,$ and it has provided you with the summary information below:

From the Statement of Financial Position as of August $31,2020$:

Total Assets $=$ $$2,785,182$

Total Liabilities $=$ $$1,913,469$

Total Net Assets $=$ $$871,713$

From the Statement of Activities for the Year Ending August $31,2020$:

Revenues and Support Without Donor Restrictions $=$ $$1,806,412$

Total Revenues and Support $=$ $$1,694,012$

Total Expenses $=$ $$2,123,027$

Total Supporting Services Expenses $=$ $$360,914$

Change in Net Assets $=($$$429,015)$

From the Statement of Cash Flows for the Year Ending August $31,2020$:

Net Cash from Operating Activities $=($$$256,987)$

Net Cash from Investing Activities $=$ $$492,012$

Net Cash from Financing Activities $=$ $$0$

Net Increase$/($Decrease$)$ in Cash $=$ $$235,025$

Other Information Provided for FY $2020$:

Cash Flow Coverage Ratio $=0\mathrm{.}82$ times

Current Ratio $=$ $$1\mathrm{.}73$

Days of Cash on Hand Ratio $=102\mathrm{.}60$ days

Receivables Turnover Ratio $=4\mathrm{.}01$ times

Total Asset Turnover Ratio $=$ $$0\mathrm{.}65$

Use the above information to answer the following:

Important Tips $(***$PLEASE READ$***)$

Round you answers to TWO decimal places

Do not include symbols $($$$)$ or commas in your answers

Use a hyphen or dash to indicate negative numbers $-$ e$.$g$.-50\mathrm{.}85$

Where appropriate, be sure to write your answer in terms of the unit specified. For example, if the input box has a $\%$ sign next to it$,$ convert your answer into a percentage, but do not enter the $\%$ sign in the input box $-$ e$.$g$.$ convert $0\mathrm{.}0156$ to $1\mathrm{.}56\%$ but write only $1\mathrm{.}56$ in the blank

A$)$ Calculate Healthy Kids' return on net assets in FY $2020$: $[$BLANK $1]\%$

B$)$ Assuming all sales are credit sales, how many days, on average, did Healthy Kids take to collect its receivables in FY $2020?[$BLANK $2]$ days

C$)$ You find that Healthy Kids' peer organizations are able to collect receivables in $150$ days, on average. How does Healthy Kids' receivable collection efficiency compare to its peers?

Favorably

Unfavorably

Cannot tell from the information provided

$[$Write the WHOLE number corresponding to the correct option $-$ e$.$g$.1$ or $2$ or $3]=[$BLANK $3]$

D$)$ Which of the following ratios would best help a vendor determine whether or not Healthy Kids will be able to pay for supplies in a timely manner?

Cash Flow Coverage Ratio

Current Ratio

Program Services Ratio

Receivables Turnover Ratio

$[$Write the WHOLE number corresponding to the correct option $-$ e$.$g$.1$ or $2$ or $3$ or $4]=[$BLANK $4]$

E$)$ What was Healthy Kids' program services ratio in FY $2020?[$BLANK $5]\%$

F$)$ How does your answer in Part E compare to the rule of thumb for this ratio?

Favorably

Unfavorably

There is no rule of thumb for this ratio

$[$Write the WHOLE number corresponding to the correct option $-$ e$.$g$.1$ or $2$ or $3]=[$BLANK $6]$

G$)$ Which of the following numbers could be Healthy Kids' fixed asset turnover ratio in FY $2020?$

$0\mathrm{.}16$

$0\mathrm{.}47$

$1\mathrm{.}45$

$[$Write the WHOLE number corresponding to the correct option $-$ e$.$g$.1$ or $2$ or $3]=[$BLANK $7]$

H$)$ Calculate Healthy Kids' debt to equity ratio for FY $2020$: $$[$BLANK $8]$

I$)$ How does your answer in Part H compare to the rule of thumb for this ratio?

Favorably

Unfavorably

There is no rule of thumb for this ratio

$[$Write the WHOLE number corresponding to the correct option $-$ e$.$g$.1$ or $2$ or $3]=[$BLANK $9]$

J$)$ Healthy Kids neither borrowed nor repaid any principal in FY $2020.$

True

False

Cannot tell from the information provided

$[$Write the WHOLE number corresponding to the correct option $-$ e$.$g$.1$ or $2$ or $3]=[$BLANK $10]$

K$)$ Calculate H