4. 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. DRAFT 11/20/2018 11:03 PM 813999_18_Guthrie Theater Foundation_FS GUTHRIE THEATER FOUNDATION Statement of Cash Flows Year ended August 31, 2018 (with comparative information for the year ended August 31, 2017) 2018 2017 Cash flows from operating activities: Change in net assets $ 7,084,228 (2,091,891) Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities: Depreciation 3,687,429 3,667,915 Net realized and unrealized gains on investments (2,819,216) (4,701,158) Change in operating assets and liabilities: Ticket sales, concerts, and other receivables Contributions receivable 2,102,933 (9,301,255) (14,970) 1,197,703 Prepaid expenses 198,194 145,804 Gift shop inventory 9,173 (55) Accounts payable and accrued expenses 143,774 (1,139,425) Deferred revenue (410,896) 234,928 Net cash provided by (used in) operating activities 694,364 (2,701,149) Cash flows from investing activities: Purchase of property and equipment (748,614) (1,249,847) 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 flows from financing activities: Proceeds for note payable 1,355,504 Principal payments on bonds payable - (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 2,702,728 (11,488,548) Cash at beginning of year 4,579,528 16,068,076 Cash at end of year 7,282,256 4,579,528 Supplemental cash flow information: Cash paid during the year for interest and financing fees 182,424 160,617 Supplemental disclosure of noncash investing activities Receivable related to endowment draw 1,972,438 See accompanying notes to financial statements