Question: 14-7 Performance measure: Information from the 2010 form 990 and the 2010 annual report for feeding america, follows. Use the following information to complete the exercise. A. Compute the following performance measures using the Form 990 data presented and comment on what information they convey to a potential donor whit out comparing them to prior years or other comparable agencies. 1 .Current ratio- liquidity 2. Revenues/expenses going concern 3. Program expenses/total expenses- program effectiveness 4. Fund-raising expenses/public support B. Using the annual financial statement provided in this exercise, calculate the same ratio listed in requirement a. Comments on any differences. C. Discuss the advantages of analyzing financial performances using audited annual financial statement information versus IRS form 990 information

AMERICARES FOUNDATION INC., 2010 FORM 990 (PARTS Vill, IX, AND X) Part IX Statement of Functional Expenses Section $01(c)(3) and 01444) organizations must complete all elu other organisations wust complete (A) but are not recuired to complute colun (1%ch and ID Do net includle amounts reported on ines t, Grantsad 24,318,222 Grants and other assistance to indviduas an 3 Grants and other assatance to governments 568-307, 550.1 568,307, 550 77,75 784. 40 764,299 persone desorbed in section 34 and section 403 employer conb 69,297 20,997 2,819 40,236 11 Fees tor 01.750 ,324 d Labbying 99,537 13 Office ,183,583 25.577 18 Royaties 18 Occupancy 17 Travel 1 Payments of travel or entertainment expenses 6.010 for any tedera, stale, or local public officia 52,078 19 Conferences, conventions, and meetings 20 Interest 21 Payments to aae 2 Depreciation, depletion, and amortiation 293,873. 162,153 1,911 23 Insurance 24 Other expenses emze expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed % of total expenses shown on ie 25 below ) 22,654, 636 22, 634, 636 a3NVENTORY WRTro"-- BAD PEBT EXPENSE MESCELLANEOUS S, 662, 069 5,429, 600 0.934 141,535 All other expenses 854, 604, 824 844.468,447 3,434,332 6,702,045 2 Jeint Costs. Check herei fllowing SOP 98-2 Complete this line only if the orpentation reported in coun jort s from a combined educational campaign and om 990 (2009) 0178001-00003 PAGE 10 56275Y 700J V 09-8.6 AMERICARES FOUNDATION INC, 2010 FORM 990 (PARTS VIlL, IX, AND X 06-1008595 of year 1 Cash- non-interest-beaning 2 Bavings and temporary cash investments-. 3Pledges and grants necelvable, net 4 Accounts receivable, net Receivables from current and former officers, directors, trusees, key emplayees, and highest compensated employees Complene Part in of 6 Recelvables trom other disqulified persons (as defined under section diaqu 495800(11) and persons descrbed in section 4958(e)(ayB) Complete Part Il of Schedule L 7 Notes and loans recelvable, net 190, 829, 1848116,931, 35 8 Inventories for sale or use Prepaid expenses and deferred charges 9 10a Land, buildings, and equipment cost or 10a 4,040,977 other basis Complete Part Vi of Schedule D 2: 853,025-10e 485,525 b Less acoumulated depreciation 11 Investments-publicly traded securbes 13 Investments program-related See Part IV, line 11 14 Intangible assets 15 Other assets. See Part IV, Iine 11 16 Tetal assets Add Ines 1 heouh 15 (must 17 Accounts payable and acerued expenses 18 Grants payable 19 Deferred revenue 20 Tax-exempt bond liablities 21 Escrow 6, 702, 814-183,637,496 or custodial account liablity Complete Part IV of Schedule D 22 Payables to current and former officers directors, trustees, key employees, highest compensated employees, and disqualified persons. Complete Part ll of Schedule L 23 Secured mortgages and notes payable to unrelated third partes, .. 24 Unsecured notes and loans payable to unrelated third parties 25 Other liabilities. Complete Part X of Schedude D 26 Total liabilties. Add lines 17 5 584,204-25 11,779,063 26 Organizations that follow SFAS 117, check hereXand complete lines 27 through 29, and lines 33 and 34 27 Unrestricted net assets 28 Temporarily restricted net assets 29 Permanently restricted net assets 163,675, 727-27 39,428,124 28 055,162- 29 84,499.46 3:2 4,177,379 Organizations that do not follow SFAS 117, check here and eomplete lines 30 through 34 30 Capital stock or trust principal, or current funds 31 Paid-in or capital surplus, or land, building, or equipment fund 32 Retained earnings, endowment accumulated income, or other funds 30 31 233 Total net assets or fund balances 34 Total labilities and net assets/fund balances 207,159, 013 33 150, 047,229 218,938, 076 34 159, 618,58 om 990 (200 AMERICARES FOUNDATION INC, 2010 cONSOUIDATED STATEMENTS OF FINANCIAL POSITION Assets Current Assets: Cash and cash equivalents Contributions receivable, net Interest and miscellaneous receivables 4943 012 13,49 815 7,69,14 0,446 Prepaid expenses Discontinued operations assets 117.531,773 02 266 Total curent assets Noncurrent Assets: Other assets Property held for ievestment Beneflicial interest in- 299,690 420.234 Perpetual assets held in trust Trust agreements Total other assets Property and equipment Fumiture and equipment 1464,183 2.904 977 Net property and equipment Total noncurrent assets Total assets $161 355 196 Liabilities and Net Assets Current Liabilities: S 5,416,84 4,534,146 Accounts payable and accrued expenses Committed grants and relief supplies Discontinued operations abilis .637,496 576.682 67,760 Liabilities under splin-interest agreements Committed grants and relief supplies Total liabilities 5,525,149 61,742, 437 164,519,44 40,120459 restricted Total net assets Total liabilities and net assets 102 Accounting for Not-for Profit Entities AMERICARES FOUNDATION INC, 2010 CONSOLIDATED STATEMENTS Total 2009 Unrestricted Restricted Restricted 2010 Support and Revenue Public support $ 40,695,379 20,868,353 263,941 62 537 365,530 97,007 Contrbutions from spilit-interest 1439.071 755,068,085 1,173.038,163 4,817,760 5,115,884 al and disaster supplies 57,185,273 97,882.812 Contrbuted services, facilities and other4817,760 Net assets released from restrictions 801.043.761 1200 225.412 Total public support 29434.281 21.609480 Revenue- 707,762 1,370,141 (624,630) 3,452,825) nterest and dividend income 707,762 Net realized loss on investments Net unesianed gain dos) n far vaiue Change in value of split-interest ,357,107 681,738 2,357,107 (1215.329 681,738 679,253 agreements 30283498498 122217 3179.064 3 286654 Total revenue Total support and revenue 783 462630 21637.978 122212 804 222,825 1.197 438.758 Program services grants, awards and program related expenses 850 430 414 850, 4304141150198680 Management and general Fundraising 3,530,918 3,530,918 10,716. 368 -8611146.782 4,036,818 7,407 431 Total supporting services Total expenses (Decrease) increase in net assets 1.444 249 1,161642 929 152) 21,637,978 122.217 6,923,957) 35,795,829 78,994,292) 21,621,978 122,217 57,250,097) 35,486,373 from operations Discontinued operations Change in net assets Net assets, beginning of year 64 51944140,120,452 4055 162 208.695.062 173 208.689 Net assets, end of year $85 525149 561242 437 $4 177 379 $151 444 965 $208.695,062 AMERICARES FOUNDATION NC, 2010 FORM 900 PARTS Vin, DC AND O fa Federated Related orgeniaations t A All other program service revenue 3Investment income including dividends, interest and other simlar amounts 4 income from investment of tas-exept bond proceeds Royaltes b Less rental expenses a Rental ncome or (loss d Net rental income or (loss). a Gross amount from sales of assets other than inventory b Less cost or cther basis experses e Gain or (s d Net gain or (loss).. Ba Oross income from fundraising events (not including S3 of contributions reported on ine 1C). See Part I, line 18 b Less drect expenses e Net income or (loss) from fundraising events Sa Gross income from gaming activites See Part IV ine 19 b Less drect expenses e Net income or (loss) from garming activices 10a Gross sales of inventory ess retums and alowances ..333203 b Less cost of goods sold d All other revenue e Tetal Add lines 11a-11d 616 om 990 (2009 S FOUNDATION INC, 2010 FORM 990 (PARTS VIll,IX, AND X 24,318,222 24,318,222 s and other assstance to individualsin S Part N lines 15 and 16 568,307,550568,307,550 2,226,543 677,758 764,239 not included above, so disqualified Other salenies and wages 86.970 Other emplayee b Leg services Se 12 Adversising and 13 Office epeses Rayaltes 17 Trae 0178001-00003 09-. AMERICARES FOUNDATION INC., 2010 FORM 990 (PARTS Vm. rm, AND X) lance Shee Receivabies from current and former officers directors rustes, key employees. nd hur est compensated engloyees Corngtete Part . of Recsvabes from other disqualifed persons (as defined under section Comlte sa nd persons descrbed in section 4958(k Part il of Schedue L 7 Notes and loans neceteble", inventories for sale or use , Prepeid expenses and deferred charges 10a Land, buildings, and equipment cost or 10 ,040,977 other basis Complete Part Vi of Schedule D 2853,025. 10 2,555, 452 0b1.485,525 b Less aocumulaed depreciation 11 Investments publicly traded secuties 13.459,835 12 13 Investments program-related See Part IV ine 11.. 14 Intangble assets Other assets See Part IV, Ine 11 Accounts payable and accrued experses Deferred revenue 17 8 Grants payable 20 Tax-exempt bond lablities 21 Escrow or custodial account liability Complete Part IV of Schedule D 22 Payables to current and former officers directors ustees, key 20 employees, highestcompensated employees, persons Complete Part l of Schedule L and disqualifed 23 Secured mortgages and notes payable to unelated thied parties 24 Unsecured notes and loans payable to unrelated third parties,..... 25 Other lablities Complete Part X of Schedule D 26 Total labilities Add ines 17 through 25 Organizations that fellow SFAS 117, check hereand complete lines 27 through 29, and lines 33 and 34 27 Unrestricted net assets 28 Temporarly restricted net assets 29 Permanently restricted net assets 163, 675,72727 84,499,460 Organizations that do not follow SFAS 117, check here 8and complete lines 30 through 34 Capital stock or trust principal, or current funds 1 Paid-in or capital surplus, or land, building, or equipment fund 30 31 32 Retained earnings, endowment, accumulated income, or other funds . . 233 Total net assets or fund balances 207,159,013 33150, 047,229. 210,938,076 34 159, 618, 587 Fom 990 (2009) 34 Total lsblities and net assets/lund balances 6275Y 7003 v 09-8.6 0178001-00003 PAGE 11 AMERICARES FOUNDATION INC, 2010 CONSOLIDATED STATEMENTS OF FINANCIAL POSITION Assets t Assets 2010 6,735,894 27,659,146 Contributions receivable, net Interest and miscellaneous receivables 4,943.012 40.446 17,531,773 561,235 13459,815 24,904 702 266 Discontinued operations - assets Contributions receivable, net Property held for investment 07 234 299,690 Perpetual assets held in trust ,951,153 828.936 1493.616 00,267 1,396,604 932,067 00,267 464,183 2.904,977 Leasehold i Accumulated depreciation and amortization Net property and equipment Liabilities and Net Assets Current Liabilities 5,416,846 3,637,496 4,534,146 5,754,455 Accounts payable and accrued expenses Committed grants and relief supplies Discontinued operations-liablities Total current liablities 576.682 Lablities under split-interest agreements Loan payable Committed grants and relief supplies 267,760 Total noncurrent liabilities Total liabilities 64 519 44 85,525,149 61 Net Assets: Temporanily restricted 151444 968 Total net assets Total liablities and net assets