Required: Compute the amounts requested for the not for profit organization's statement of activities for the year ended 12/31/21. Enter your answers in the space provided below.

A private not for profit organization is working to create a cure for a deadly virus. Included in the organization's temporarily restricted net assets are $4,000,000 for the purchase of equipment and $5,000,000 for operating expenses and $300,000 received in 2020 which could be used $150,000 per year for the period 2021-2022.

During 2021, the organization had the following transactions:

• Unrestricted cash gifts of $500,000 are received. The board released $700,000 of board designated funds.
• Equipment is bought for $600,000 which came from restricted funds. The equipment is used 80 percent for research purposes and 20 percent for management and general purposes. The depreciation for the year was $100,000.
• A donation of $700,000 with the stipulation that all the money be used for research.
• The organization received marketing research assistance from an analytics expert for its yearly fund raiser. The service would have cost $300,000 and would have been purchased if not donated.
• Operating expenses for research were incurred- $800,000. The money came from restricted funds.
• Received an endowment of $1,000,000. The income from the endowment could be used for any reason. The endowment agreement specified that the gift could be spent after the year 2030. Endowment income was $100,000.
• An unrestricted pledge of $400,000 that will be collected in four years is received . The present value of the pledge was $300,000. Interest of $10,000 is recognized in the year. In addition, an unrestricted pledge of $800,000 was received with the stipulation that the donation was contingent upon the organization raising $800,000 on their own. The organization has not raised the $800,000.
• Salaries of $1,000,000 are paid with $700,000 from restricted funds. Of the total salaries, 70 percent is for research, 20 percent for administration and 10 percent for fund raising.

Required: Compute the amounts requested

1. Amount of contributions without donor restrictions?

2. Amount of contributions with donor restrictions ?

3. Amount of net assets released from restrictions ?

4. Amount of program expense ?

5. Amount of supporting expense ?

6. Disregard your answers to questions 4 & 5. Assume the organization had the following expenses:

research $ 1, 200,000, patient care $ 600,000, management & general $ 200,000, membership development $ 200,000 & fund raising $ 200,000 ?

Compute the program expense ratio ?

Answer rating: 100% (QA)

Answer 1 Quantity of contributions while not donor restrictions we have a tendency to shall have the ... View the full answer