Care & Repair RI

Trial Balance

as of $12/31/18$

Cash Debit $$156,500$

Pledges Receivable$$Without Donor Restrictions Debit Debit $41,000$

Estimated Uncollectible Pledges Credit $$4,100$

Inventory Debit $2,800$

Investments Debit $178,000$

Furniture and Equipment Debit $210,000$

Accumulated Depreciation$$Furniture and Equipment Credit $120,000$

Accounts Payable Credit $20,520$

Net Assets Without Donor Restrictions Credit $196,500$

Net Assets With Donor Restrictions$$Programs Credit $50,500$

Net Assets With Donor Restrictions$$Permanent Endowment Credit $140,000$

Contributions$$Without Donor Restrictions Credit $378,820$

Contributions$$With Donor Restrictions$$Programs Credit $38,100$

Investment Income$$Without Donor Restrictions Credit $11,200$

Depreciation Expense Debit $30,000$

Printing and Publishing Expense Debit $4,190$

Rent Expense Debit $32,000$

Salaries and Fringe Benefit Expense Debit $288,410$

Supplies Expense Debit $5,940$

Telephone and Postage Expense Debit $4,500$

Utilities Expense Debit $6,400$

Totals $$959,740$ $$959,740$

"Use the information in the Trial Balance tab to prepare the following financial statements:

$1.$ Statement of Financial Position

You will use the data provided in the Trial Balance tab to complete this statement.

$2.$ Statement of Activities

In addition to the information provided from the Trial Balance tab, use the following information about your nonprofit to prepare the Statement of Activities.

a$.$ Salaries and Fringe Benefit Expenses were allocated to Program Services and Supporting Expenses in the following percentages:

i$.$ Program $1$: $40\%$

ii$.$ Program $2$: $20\%$

iii. Program $3$: $10\%$

iv$.$ Management and General: $20\%$

v$.$ Fund$-$Raising: $10\%$

b$.$ Rent and Utility, Supplies, Printing and Publishing, and Telephone and Postage Expenses were allocated in the same manner as Salaries and Fringe Benefit Expenses. c$.$ Depreciation Expense was divided equally to each functional expense category.

$3.$ Statement of Cash Flows

In addition to the information provided from the Trial Balance tab and the information you have the prepared in the Statement of Financial Position and Statement of Activities, use the following information to prepare the Statement of Cash Flows.

a$.$ Your organization had $$163,314$ of cash on hand at the beginning of the year.

b$.$ During the year, your organization received cash from contributors: $$340,800$ that was unrestricted and $$38,100$ that was restricted for the purchase of equipment for the center.

c$.$ It had $$11,200$ of income earned and received on long$-$term investments.

d$.$ The organization spent cash of $$288,410$ on salaries and fringe benefits, $$22,000$ on the purchase of equipment, and $$86,504$ for operating expenses.

e$.$ Other pertinent information follows: net pledges receivable increased $$6,000,$ inventory increased $$1,000,$ accounts payable decreased $$102,594,$ and there were no salaries payable at the beginning of the year.

$4.$ Budget

Refer to the Trial Balance tab to prepare your budget.

a$.$ You anticipate a $10\%$ increase in Contributions $-$ Without Donor Restrictions. Contributions With Donor Restrictions $-$ Program is anticipated to increase by $15\%.$

b$.$ Income from investments is projected at $7\%.$

c$.$ Assets are depreciated using the straight$-$line method and no increase is projected over last year.

d$.$ A $3\%$ increase is scheduled for Salaries and Fringe Benefit Expenses.

e$.$ All other expenses are anticipated to increase by $5\%.$

$5.$ Financial Analysis

To prepare the Financial Analysis, you will use information presented in the Financial Statements that you have prepared.

a$.$ Current Assets are a combination of Cash, Net Pledges Receivable, and Inventory.

b$.$ Total Revenue includes all Contributions and Earned Income.

c$.$ Public Support includes Contributions only.

d$.$ Investment Account Balance at the Beginning of the Year was $$166,800.$

e$.$ Your organization served $214$ clients during $2018.$

f$.$ Other than Accounts Payable, you have no debt service; therefore, the Leverage and Debt Coverage Ratio is not applicable to your organization.

Figures and data adapted from Reck, Accounting for Governmental & Nonprofit Entities, $18$e $"$