Similar to audits of for-profit entities in which the adequacy of the allowance for doubtful accounts...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Similar to audits of for-profit entities in which the adequacy of the allowance for doubtful accounts associated with accounts receivable must be evaluated, audits of government and nonprofit entities require the evaluation of receivables and the related allowance accounts. The following represents the aging of taxes receivable for McKenzie Health Foundation for the historical years ended June 30, 2020, 2019, 2018, 2017, and 2016. Contributions receivable vary significantly by year; however, contribution revenue has been fairly stable over the five-year period. Fiscal Year-End Total contributions receivable.... Allowance for uncollectible contributions Total contributions revenue 6/30/2020 $ 1,006,000 30,180 21,123,000 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 $1,273,000 38,190 22,064,100 $ 931,000 $1,874,000 $ 596,000 $ 465,000 27,930 20,099,500 65,590 22,117,200 20,860 21,978,800 18,600 21,654,000 Aging of contributions receivable 0-30 days.. 31-60 days. 61-90 days.. >90 days. 520,000 376,000 26,000 426,000 410,000 471,000 436,000 290,000 205,000 1,474,000 596,000 435,000 400,000 30,000 50,000 Required: $ 1,006,000 $1,273,000 $ 931,000 $1,874,000 $ 596,000 $ 465,000 1. Analyze the aging of contributions receivable and the allowance for uncollectible contributions. Your analysis should present percentages within the categories of the aging of contributions receiv- able. In particular, you should note whether percentage of older receivable amounts has changed over the analysis period. 2. Comment on the adequacy of the allowance for uncollectible contributions. 3. Would your approach to determining the allowance for uncollectible contributions change if you were making an analogous analysis in a for-profit entity? Similar to audits of for-profit entities in which the adequacy of the allowance for doubtful accounts associated with accounts receivable must be evaluated, audits of government and nonprofit entities require the evaluation of receivables and the related allowance accounts. The following represents the aging of taxes receivable for McKenzie Health Foundation for the historical years ended June 30, 2020, 2019, 2018, 2017, and 2016. Contributions receivable vary significantly by year; however, contribution revenue has been fairly stable over the five-year period. Fiscal Year-End Total contributions receivable.... Allowance for uncollectible contributions Total contributions revenue 6/30/2020 $ 1,006,000 30,180 21,123,000 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 $1,273,000 38,190 22,064,100 $ 931,000 $1,874,000 $ 596,000 $ 465,000 27,930 20,099,500 65,590 22,117,200 20,860 21,978,800 18,600 21,654,000 Aging of contributions receivable 0-30 days.. 31-60 days. 61-90 days.. >90 days. 520,000 376,000 26,000 426,000 410,000 471,000 436,000 290,000 205,000 1,474,000 596,000 435,000 400,000 30,000 50,000 Required: $ 1,006,000 $1,273,000 $ 931,000 $1,874,000 $ 596,000 $ 465,000 1. Analyze the aging of contributions receivable and the allowance for uncollectible contributions. Your analysis should present percentages within the categories of the aging of contributions receiv- able. In particular, you should note whether percentage of older receivable amounts has changed over the analysis period. 2. Comment on the adequacy of the allowance for uncollectible contributions. 3. Would your approach to determining the allowance for uncollectible contributions change if you were making an analogous analysis in a for-profit entity?
Expert Answer:
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
Posted Date:
Students also viewed these accounting questions
-
This assignment requires you to complete the 2022 tax reporting for a fictional woman named Anna Smith. Question 1 T1 - step 4 - line 66 This is Anna's taxable income Answer: Question 2 T1 - step...
-
China Petroleum and Chemical Corporation China Petroleum and Chemical Corporation (CPCC) is one of a growing number of Chinese companies that has cross-listed its stock on foreign stock exchanges. To...
-
The following data represent the prices in dollars of general admission tickets for the last 18 concerts at one venue. Use the given data to determine the stems for this stem-and-leaf plot. $50 $61...
-
Using the data in the Excel file Freshman College Data, identify the best regression model for predicting the first year retention rate. For the model you select, conduct further analysis to check...
-
a. An oxygen-containing compound shows an absorption band at ~ 1700 cm-1 and no absorption bands at ~ 3300 cm-1, ~ 2700 cm-1,or ~ 1100 cm-1. What class of compound is it? b. A nitrogen-containing...
-
Anthropologists have long been interested in kinship, especially in societies without centralized government. Why should this be the case?
-
Jordan Brady schedules gigs for local bands and creates CDs and t- shirts to sell at each gig. Brady uses a normal- costing system with two direct- cost pools, labor and materials, and one indirect-...
-
Cullumber Cap Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Basic Basic Plus Premium Total Units sold 720 300 180 1,200...
-
Consider the system of equations: 2 x - y + z = 5 3 x ^ 2 + 4 y = 2 5 x ^ 3 - 2 y ^ 2 + z = 1 0 Write a MATLAB script to find numerical solutions to this system of equations using the fsolve...
-
Gordon's Gin has equity with a book value of $30 million and a market value of $60 million. It has debt with a market value of $10 million. T bills yield 4% per year. The market risk premium is...
-
Discuss the reasons why the net present value investment appraisal method is preferred to other investment appraisal methods such as payback, return on capital employed and internal rate of return.
-
Why do funders pay much more attention to sustainability than grant writers may suspect?
-
Being an ETL specialist, what factors will you consider as top priority in making sure that the load of data is successful?
-
Julia claims that light is a particle. do you agree or disagree. justify your position . explain your redoing add supporting evidence for your argument , that light is a wave or particle.
-
Choose a topic Strategic planning in a family business and write a paper in which you address the following: Research and present how that topic impacts a family business and how it is addressed in...
-
Beginning with a country that has a trade deficit, demonstrate graphically what will happen to a countrys potential output with globalization if that countrys costs of production fall. Explain your...
-
Fill in the Blank. In the finite element method, \(a(n)\) ___________ solution is assumed within each element.
-
The stiffness matrix of a bar element is given by a. \(\frac{E A}{l}\left[\begin{array}{ll}1 & 1 \\ 1 & 1\end{array} ight]\) b. \(\frac{E A}{l}\left[\begin{array}{rr}1 & -1 \\ -1 & 1\end{array}...
-
What is the basis for the derivation of transformation matrices?
Study smarter with the SolutionInn App