1. Answer the following questions considering the information provided in the cash flow statement. (a) (0.5 points) What type of cash flow method does the organization use? Explain how do you know that. (b) (0.5 points) What is the change in net assets for 2017 and 2018? Is the variation favorable or unfavorable for the organization? Explain why (c) (1 point) Explain the viability of the organization based on the operating, investing, and financing activities.

200M + GUTHRIE THEATER FOUNDATION Statement of Cash Flows Year Ended August 31, 2018 Iwith comparative information for the year ended August 31, 2017|| 2018 2017 Casti flow from operating activities: Change in net assets $ 7,084,228 $ 2.8091,801) ( Adjustments to reconcile change in net assets to net cash provided by (used is operating activities: Depreciation $ 3,687,429 $ 3,567,915 Net realized and unrealized gains en investments $ (2,819,216) $ (4,701,158) Chance in operating assets and liabilities: Ticket sales, cancerts, and ather receivables S 2,102,933 $ ( (14,970) Contributions receivables $ 19,301,255) $ 1,197,703 Prepaid expenses S 198,194 $ 145,814 Gift shop inventory S 9,173 $ (551 Accounts payable and accrued expenses $ 143,774 $ (1,139,425) Deferred revenue $ 1410,496) $ 234,928 Net cash provided by (used in operating activities 5 694,364 $ (2,701,149) Cash flows from investing activities: Purchase of praparty and equipment S 1748,114) $ (3,249,847) ( Proceeds from sale of investments $ 15,698,761 $ 19,591,717 Purchase of investments $ 15,297,287) $ (19,829,269) Net cash used in investing activities $ (347,140) $ (1,487,399) ($ ) Cash flow from financing activities: Proceeds from note payable 5 $ 1,355,501 $ Principal payments on bands payable S $ $7,500,000 ( Contributions restricted for long-term investment $ 1,000,000 $ 200,000 Net cash provided by (used in) financing activity $ 2,355,504 $ (7,300,000) $ $ Net change in cash Cash at the beginning of the year Cash at the end of the year $ 2,702,728 $ (11,488,548) S 4,579,529 $ 16,068,076 5 7,282,255 $ 4,579,528 $ 192,424 $ 160,617 Supplemental cash flow information: Cash paid during the year for interest and financing fees Supolemental disclosure of noncash investing activities Receivable related to endowment drew S $ 1,972,438