Fleetside Theater Part II

Suppose the following:

Fleetside undertook the campaign. The campaign was 18 months in length, with the goal of raising $50,000 each from 10 donors. Campaign expenses were $7500 per month for the fundraiser and $20,000 for expenses (materials, entertainment, travel). In year 1 of the campaign, expenses of $105,000 were incurred (12 months of the fundraiser plus $15,000 of the other expenses) and pledges in the amount of $250,000 were received.

Calculate the new balance sheet (3 points)

What is the new operating net income? (1 point)

What are the new operating metrics (4.5 points)?

Did this change your opinion in question 2? Explain your reasoning. (3

points) (Note: backtesting using current data is a good way of seeing how a major new activity affects operations.)

Hint: Campaign expenses are unrestricted and are recognized in operating activity. The pledges are for endowment and restricted for the Innovation Fund