1.Assume your organization has the following inventory changes during the fiscal year:

Beginning Inventory1,000 units valued at $10 each

April purchases600 units at $15 each

August purchases2,100 units at $17 each

Total Units Remaining 500

Calculate the value of the ending inventory and the value of the inventory used (the inventory expense) for the year using both the FIFO and the LIFO method of cost-flow.

2.In a not-for-profit organization, donations received for a particular purpose are recorded as 1.___ Net Assets. Donations that are cannot be spent, but the earnings can be are referred to as 2.___ Net Assets. Profits and donations with no donor specifications are referred to as 3.___ Net Assets.

3.Match the following terms with the appropriate definitions.

1.__ Common stock

2.__ Preferred stock

3.__ Retained earnings

a.Ownership rights with predetermined dividend payments.

b.Sale of ownership shares to generate capital.

c.Profits generated over time that have not been distributed to owners.

4.Match the following types of ratios with their definitions.

1. __ Common size
2. __ Liquidity
3. __ Efficiency
4. __ Solvency
5. __ Profitability

• A assess whether an organization is maintaining an adequate level of cash or near-cash assets.
• B assess how well an organization did financially.
• C compares numbers on the balance sheet to total assets and numbers on operating statement to revenues.
• D assess the organization's ability to meet its financial debt obligations (principal and interest).
• E assess how well an organization manages its activities.