Exhibits 14-11 and 14-12 on present the statements of financial position and activities for a nonprofit, the Code 4 Change. Please calculate the financial ratios listed in problem 14-11 using Excel. In a single workbook, present and interpret these figures. Summarize them in a single table showing both 2017 and 2016, and then for each, define the ratio and discuss what information it conveys in this context.

Exhibit 14-11:

Present the statements of financial position and of activities for Code 4 Change, a fictional organization that provides training in computer programming to the unemployed. For both

2017 and 2016, calculate:

a. common size ratios for the statements of financial position and

statements of activities

b. the current ratio

c. days of cash on hand

d. the debt to equity ratio

e. the total margin

f. the program services ratio

How do you assess Code 4 Changes overall financial position and

performance? Why? In your assessment, make reference to each ratio you

calculated.

14-11:

14-12:

Please fill out the grey shaded cells:

Excel Cells same as pictures above:

CODE 4 CHANGE
Statements of Financial Position
Common Size Ratios
	December 30, 2017		December 30, 2016
	%	$	%	$
ASSETS
CASH AND CASH EQUIVALENTS		1,909,606		1,044,193
INTEREST AND DIVIDENDS RECEIVABLE		61,244		52,582
CAMPAIGNS PLEDGES RECEIVABLE		373,788		358,632
PREPAID EXPENSES AND OTHER		16,244		25,367
INVESTMENTS		10,944,924		9,653,039
TOTAL	0.00%	13,305,806	0.00%	11,133,813
LIABILITIES AND NET ASSETS
LIABILITIES:
Accounts payable DAV		201,721		171,550
Accounts payable other		910		1,017
Annuity payment liability		3,857,262		3,679,148
Total liabilities		4,059,893		3,851,715
UNRESTRICTED NET ASSETS		9,245,913		7,282,098
TOTAL LIABLITIES and NET ASSETS	0.00%	13,305,806	0.00%	11,133,813
NOTE: the denominator needs to be the same for all numbers; in this case, total assets
Interpretation:

PART A continued
CODE 4 CHANGE
Statements ofActivities
Common Size Ratios
	December 30, 2017		December 30, 2016
	%	$	%	$
SUPPORT AND REVENUE:
Contributions		4,771,172		2,654,400
Contributions of charitable gift annuities		241,245		178,626
Bequests		2,178,924		32,436,803
Investment income net		766,580		384,670
Total support and revenue	0.00%	7,957,921	0.00%	35,654,499
EXPENSES:
Program services		6,053,675		34,754,236
Management and general		85,933		75,499
Fundraising		179,277		168,316
Total expenses		6,318,885		34,998,051
CHANGE IN NET ASSETS BEFORE CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS		1,639,036		656,448
CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS		324,779		428,159
CHANGE IN NET ASSETS		1,963,815		1,084,607
NET ASSETS Beginning of year		7,282,098		6,197,491
NET ASSETS End of year		9,245,913		7,282,098
NOTE: the denominator needs to be the same for all numbers; in this case, total support and revenue
Interpretation:

EXHIBIT 14-11 Code 4 Change Statements of Financial Position as of March 31, 2017 and 2016 Assets 2017 2016 1,044,193 Cash and cash equivalents 1,909,606 Interest and dividends receivable 61,244 52,582 Pledges receivable-net of assessment fees and 373,788 358,632 allowance for uncollectible pledges of $449,162 in 2017 and $464,486 in 2016 Prepaid expenses and other 25,367 16,244 Investments 10,944,924 9,653,039 Total Assets $13,305,806 $11,133,813 Liabilities and Net Assets Liabilities Accounts payable $202,631 $172,567 Annuity payment liability 3,857,262 3,679,148 $ 4,059,893 Total liabilities 3,851,715 Unrestricted Net Assets 7,282,098 9,245,913 Total Liabilities and Net Assets $13,305,806 $11,133,813 Code 4 Change Statements of Activities for the Years Ended March 31, 2017 and 2016 2017 2016 Support and Revenue: Contributions-net of assessment fees and allowance for uncollectible pledges $ 2,654,400 of $428,587 in 2017 and $433,252 in 2016 $4,771,172 Contributions of charitable gift annuities 241,245 178,626 Bequests 32,436,803 2,178,924 Investment income-net 766,580 384,670 $7,957,921 $35,654,499 Total support and revenue Expenses: Program services $6,053,675 $34,754,236 Management and general 85,933 75,499 Fundraising 179,277 168,316 $6,318,885 $34,998,051 Total expenses Change in Net Assets Before Change in $ 656,448 $1,639,036 Unrealized Appreciation of Investments Change in Unrealized Appreciation of Investments 428,159 324,779 $ 1,084,607 $1,963,815 Change in Net Assets Net Assets-Beginning of year 7,282,098 6,197,491 Net Assets-End of year $ 7,282,098 $9,245,913 A C D CODE 4 CHANGE Statements of Financial Position Common Size Ratios December 30, 2017 December 30, 2016 % $ % $ ASSETS 1,909,606 1,044,193 CASH AND CASH EQUIVALENTS INTEREST AND DIVIDENDS RECEIVABLE 61,244 52,582 373,788 358,632 CAMPAIGNS' PLEDGES RECEIVABLE PREPAID EXPENSES AND OTHER 16,244 25,367 INVESTMENTS 10,944,924 9,653,039 TAL 0.00% 11,133,813 0.00% 13,305,806 LIABILITIES AND NET ASSETS LIABILITIES: Accounts payable DAV Accounts payable-other Annuity payment liability 171,550 201,721 910 1,017 3,857,262 3,679,148 3,851,715 Total liabilities 4,059,893 UNRESTRICTED NET ASSETS 9,245,913 Z,282,098 0.00% 13,305,806 0.00% 11,133,813 TOTAL LIABLITIES and NET ASSETS NOTE: the denominator needs to be the same for all numbers; in this case, total assets Interpretation: L PART A continued CODE 4 CHANGE Statements ofActivities Common Size Ratios December 30, 2017 December 30, 2016 SUPPORT AND REVENUE: Contributions 2,654,400 178,626 32,436,803 384,670 4,771,172 241,245 Contributions of charitable gift annuities Bequests Investment income net 2,178,924 766,580 Total support and revenue 35,654,499 0.00% 7,957,921 0.00% EXPENSES: Program services Management and general Fundraising 6,053,675 85,933 34,754,236 75,499 168,316 179,277 Total expenses 6,318,885 34,998,051 CHANGE IN NET ASSETS BEFORE CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS 1,639,036 656,448 CHANGE IN UNREALIZED APPRECIATION OF INVESTMENTS 324,779 428,159 CHANGE IN NET ASSETS 1,963,815 1,084,607 NET ASSETS - Beginning of year 7,282,098 6,197,491 NET ASSETS- End of year 9,245,913 7,282,098 NOTE: the denominator needs to be the same for all numbers; in this case, total support and revenue Interpretation: