In the appendix to the chapter, partial financial statements are presented.

Required:

1. What is the institution’s largest source of unrestricted revenue? What is the largest source of total revenue?

2. What is the largest asset on the statement of financial position? What is the largest expense on the statement of operations? Are these to be expected? Explain why.

3. Net assets include three items. What are they and what do you think each represents?

4. What is the largest adjustment on the statement of cash flows in adjusting the change in net assets to cash provided by operating activities (also is it positive or negative)? Do you think this adjustment is common for a private university? Why or why not?