Case Study #3 - Financial Statement Review (Instructions) For Assignment #3, we will be using the financial statement for year ending March 31, 2021, that is located on the Internet for the not for profit organization named Youth Without Shelter (YWS). The not for profit charity is located in the greater Toronto area. The financial statement is located on their public website (yws.on.ca) under the heading "who we are" and then "Financials". I have also attached the financial statements to the assignment that are public knowledge and accessible to the general public. Note, in addition, I also contacted YWS to advise that the financial statements that are on their public website will be used as our assignment and they consented. Answer the 10 questions that I have listed. Note, the questions that are listed are totally hypothetical and do not represent the organization in any actual manner. Please ensure to show all calculations if the question requires them for the answer. Before you answer the questions, review the financial statement in its entirety to ensure you have an understanding of the financial information. (Answer all parts of the following questions) 1. Who are the auditors of this financial statement and provide the date of the audit. What are the auditor's responsibilities when completing the audit of the organization's financial statement? 2. The organization is developing a new fundraising campaign. For a $50 donation that will go towards the purchase of a multi-residence apartment to be used to house youth, the donor will receive a volunteer t-shirt and a sponge brick with their name engraved on it. The variable costs for the donor gift is $10, and the total fixed cost of the campaign is $200,000. Determine the a fixed cost of the campaign is $200,000. Determine the contribution margin for each $50 donation that is sold. In addition, calculate the break-even point in donations, and the required amount of $50 donations that are need to achieve a profit after fixed costs of $100,000. 3. With the two expenses of residents' needs and amortization that are in the financial statement, identify the cost as either variable or fixed. Explain why you identified the cost as variable or fixed. 4. Identify the total debt the organization has and explain if the debt has been properly managed and serviced. Explain if the organization has the ability to take on additional long-term debt. 5. Explain the difference between cash and short-term investments in the asset section of the financial statement. Where does an organization typically hold 2021 year statement. Where does an organization typically hold their cash? 6. YWS is considering the purchase of equipment for $200,000 to fund a program that will provide $75,000 yearly cash inflows for 5 years. Calculate the payback period? Explain if the payback you calculated is reasonable. 7. Answer the following short answer questions for the end: a) The most recent financial year-end date (month and year) and the number of months it covers. b) Calculate the working capital and explain if the level is sufficient for this charity organization. c) Original cost of Building Improvements. d) The NBV of furniture & fixtures. e) The largest source of revenue and largest expense item in 2021. f) Why are prepaid expenses listed as an asset item in the financial statement? 8. Identify the cash flows from operating activities and explain why accounts receivable reduced the amount of cash flows in 2021. 9. The organization is setting up a new program that will operate for 4 months. The total cash funds of $200,000 from the government to operate the program are to be from the government to operate the program are to be provided evenly to YWS in $50,000 payments on Day 1 of each month. The monthly cash expenses for the program from start to finish will be $75,000, $50,000, $50,000 and $25,000. For any months the program has a cash shortfall, the shortfall will be covered by YWS until the funds have arrived from the program funder. Prepare a 4-month cash budget for this new program. 10. The organization is looking to purchase furniture and fixtures for $140,000. Assume the organization made the purchase on Day 1 of the fiscal year; calculate the annual depreciation given it will be amortized over the estimated useful life on a straight- line basis. The expected terminal/ending value is zero. Explain how depreciation impacts the organization's cash flow and net income (excess or deficiency of C cash flow and net income (excess or deficiency of revenues over expenses). Case Study #3 - Financial Statement Review (Instructions) For Assignment #3, we will be using the financial statement for year ending March 31, 2021, that is located on the Internet for the not for profit organization named Youth Without Shelter (YWS). The not for profit charity is located in the greater Toronto area. The financial statement is located on their public website (yws.on.ca) under the heading "who we are" and then "Financials". I have also attached the financial statements to the assignment that are public knowledge and accessible to the general public. Note, in addition, I also contacted YWS to advise that the financial statements that are on their public website will be used as our assignment and they consented. Answer the 10 questions that I have listed. Note, the questions that are listed are totally hypothetical and do not represent the organization in any actual manner. Please ensure to show all calculations if the question requires them for the answer. Before you answer the questions, review the financial statement in its entirety to ensure you have an understanding of the financial information. (Answer all parts of the following questions) 1. Who are the auditors of this financial statement and provide the date of the audit. What are the auditor's responsibilities when completing the audit of the organization's financial statement? 2. The organization is developing a new fundraising campaign. For a $50 donation that will go towards the purchase of a multi-residence apartment to be used to house youth, the donor will receive a volunteer t-shirt and a sponge brick with their name engraved on it. The variable costs for the donor gift is $10, and the total fixed cost of the campaign is $200,000. Determine the a fixed cost of the campaign is $200,000. Determine the contribution margin for each $50 donation that is sold. In addition, calculate the break-even point in donations, and the required amount of $50 donations that are need to achieve a profit after fixed costs of $100,000. 3. With the two expenses of residents' needs and amortization that are in the financial statement, identify the cost as either variable or fixed. Explain why you identified the cost as variable or fixed. 4. Identify the total debt the organization has and explain if the debt has been properly managed and serviced. Explain if the organization has the ability to take on additional long-term debt. 5. Explain the difference between cash and short-term investments in the asset section of the financial statement. Where does an organization typically hold 2021 year statement. Where does an organization typically hold their cash? 6. YWS is considering the purchase of equipment for $200,000 to fund a program that will provide $75,000 yearly cash inflows for 5 years. Calculate the payback period? Explain if the payback you calculated is reasonable. 7. Answer the following short answer questions for the end: a) The most recent financial year-end date (month and year) and the number of months it covers. b) Calculate the working capital and explain if the level is sufficient for this charity organization. c) Original cost of Building Improvements. d) The NBV of furniture & fixtures. e) The largest source of revenue and largest expense item in 2021. f) Why are prepaid expenses listed as an asset item in the financial statement? 8. Identify the cash flows from operating activities and explain why accounts receivable reduced the amount of cash flows in 2021. 9. The organization is setting up a new program that will operate for 4 months. The total cash funds of $200,000 from the government to operate the program are to be from the government to operate the program are to be provided evenly to YWS in $50,000 payments on Day 1 of each month. The monthly cash expenses for the program from start to finish will be $75,000, $50,000, $50,000 and $25,000. For any months the program has a cash shortfall, the shortfall will be covered by YWS until the funds have arrived from the program funder. Prepare a 4-month cash budget for this new program. 10. The organization is looking to purchase furniture and fixtures for $140,000. Assume the organization made the purchase on Day 1 of the fiscal year; calculate the annual depreciation given it will be amortized over the estimated useful life on a straight- line basis. The expected terminal/ending value is zero. Explain how depreciation impacts the organization's cash flow and net income (excess or deficiency of C cash flow and net income (excess or deficiency of revenues over expenses)