Information from the 2015 Form 990 and the 2016 audited financial statements for Feeding America follows. Although Form 990 indicates it is for 2015, it is actually for the period July 1, 2015 to June 30, 2016, the same time period as the 2016 audited financial statement. Use the following information to complete the exercise.

a. Compute the following performance measures using the Form 990 data presented in this exercise and comment on what information they convey to a potential donor without comparing them to prior years or other comparable agencies. 1. Current ratio - liquidity. 2. Revenues/expenses - going concern. 3. Program expenses/total expenses - program effectiveness. 4. Public support/fund-raising expenses - fund-raising efficiency.

b. Using the audited financial statements provided in this exercise, calculate the same ratios listed in a. Comment on any differences.

c. Discuss the advantages of analyzing financial performance using audited annual financial statement information versus IRS Form 990 information.

Accounting for Government & Nonprofit Entities, 18th Edition. Problem 13-22.

m 990 2015) Bart VII D LA, 2015 FORM 990 (PARTS VIII, IX, AND X) FEEDING AMERICA Statement of Revenue Check if Schedule o contains a response or note to any vine in This Part VI.. Und excluded from 517.556 18 Federated campaigns .. Membership dues.......... 1b Fundraising events ..... d Related organizations ........ 10 Government grants (contributions).. 10 + All other contributions gits, grants and similar amounts not included above. 112, 73, 73.80 Noncash contributions included in the 111 $ 2 26,692 h Total Add lines 1. Add lines 11 . . LLLLLLLLLLLL 2a E90 PROSENT BEVE b MEMER FEES C ONFERENCE REVENUE d INHEREST TNCOVE 3500, 3 All other program service revenue ..... Total Add lines 2a-21... Investment income (including dividends interest and other similar amounts)........ Income from investment of tax exempt bond proceeds. Royalties ........ o Rea c h Pensional SE303 6 10115 ba Gross rents ........ b Less: rental expenses ... 204, 255. C Rental income or (loss) . 46,501. d Net rental income ar (loss).. ... 7a Gross amount from sales of Secur i ) Other assets other than inventory b Less: cost or other basis and sales expenses.... C Gain or loss) ....... d Net gain or loss) ...... Ba Gross income from fundraising events (not including $ of contributions reported an ine 1c). See Part IV line 18 ......... b Less: direct expenses .......... C Net income or loss) from fundraising events.. Sa Gross income from gaming activities See Part IV. line 19 ...... b Less direct expenses .......... L Net income or loss) from gaming activities. I 10a Gross sales of inventory less returns and allowances .... . 2 b b Less: cost of goods sold ......... C Net Income or loss) from sales of inventory Fusiness Colle Miscellaneous Revenue 11a CANONS MATERIALE DEREN ETRE d All other revenue ... Total. Add lines 11a-11d. Total revenue. See instructions Form 990 (2015) . 12 FEEDING AMERICA, 2015 FORM 990 (PARTS VIII, IX, AND X) Page 10 36-3673599 For (2015) FEEDING AMERICA Partix Statement of Functional Expenses Section 501(c)(3) and 501(c)(3) organizations must complete all columns. All other organizations must complete column (A) Check if Schedule o contains a response or note to any ine in this part IX Do not include amounts reported on Nnes 6, 7, Total des Program Service 8b9b, and Tob of Part VII. Management 10,000. 1, 703, 723. 349,740. 2,269,589. 5,285,724. 145,935. 226, 416. 248, 160 302.540. 595.618. 414,935. 14,270. 153,092. 78, 179. 1 Gratis and other since to domestic bransons and comestic government de Parine21.... 2,336,741,082. 2,336,741,082. 2 Grants and other assistance to domestic 10,000 Individuals. See Part IV line 22, .. 3 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV lines 15 and 16 4 Benefits paid to or for members . 5 Compensation of current officers, directors trustees, and key employees ...... 3,339,573. 1,286, 110. .. 6 Compensation not included above 10 disualised persons (as defined under section 495001) and persons described in section 495 0. 7 Other salaries and wages , 20,996,336. 13,441,023. & Pension plan accruals and contributions include section 401(k) and 403(b) employer contributions] 1,166,650. 718,175. 9 Other employee benefits. II. 2,419,445. 1.597,411. 10 Payroll ... 1.764,075. 1,100,980. 11 Fees for services inon employees a Management 0. b Legal ... 14.270. Accounting .... 153,092. d Lobbying 127,641. 127,641. e Professional funding service Se Pat V I T 2,483, 495. f Investment management fees 78, 179. 9 Other in TOUT de 10 ore 2 6.096,188. t ine 11 (Ala 10,760, 662. enses on 12 Advertising and promotion 3,202,786. 1,736,328. 13 Office expenses.. 1,028, 014. 721,803 14 Information technology... 5,732,424. 4,000,277. 15 Royalties...... 16 Occupancy ... 1,501,004 B2B,024 17 Travel 1,973, 106. 1,539,062. . . . - - - - 18 Payments of travel or entertainment expenses for any federal, state or local public officials 0. 19 Conferences, conventions, and meetings 1,530,784. 1,356, 486. 20 interest 0. 21 Payments to affiliates.............. 22 Depreciation, depletion and amortization.... 567,125. 430,797. 94,023. 53, 631. 23 insurance....... ..... " 24 Other expenses ieme con not covered above that miscelaneous penses in ine 24e. If line 24e amount exceeds 10% of Ine 25, column (A) amount latine 24. penses on schedule o a PRODUCE 19,435,856. 18,435,956. POSTAGE & PRINTING 8,927,957. DISASTER PURCHASES 389,476. 389,476. PROFESSIONAL DEVELOCMENT__ 197, 70e. 1B, 282. All other expenses --- - ------- 202, 790. 61.603. 25 Total functional expenses. Add Ines through 24+ 2,423,037.553.2, 390,690, 235. 26 Joint costs. Complete this line only if the organization reported in column (Bont costs from a combined educational campaign and fundraising solicitation Check here if following SOP 98.2 (A5C 958-720)...... 881,425. 2,674. 191, 491. 370, 365. 3,783,049. 1, 463,784 114, 720. 1, 361,792. 308, 752. 158, 189. 364.228. 275,955. 73,559. 100,740. 55, 166. 18, 450, 1,162. 21,942. 8.927.957. 142,548, 130,310. 7, 172, 292, 36,878. 10.877. 25.975,026. Form 990 2015 Source: Internal Revenue Service e rental & Nonprofit Entities, 18th Edition FEEDING AMERICA, 2015 FORM 990 (PARTS VIII, IX, AND X) FEEDING AMERICK Form 99D (2015) Part X Balance Sheet Check if Schedule contains a response of note to any line in this part X 36-3673599 Page 11 L Assets Cash -non-interest-bearing Sevings and temporary cash investments Beginning of End of yes 3 Pledges and grants receivable.net 9: 31 50,397.174. 1 4 0.644,516. 4 Accounts receivable, not 0. 2 Loans and other receivables from current and former officers, directors ....... 29.034.291. 3 37.507.788. trustees, key employees 3.681,950. 4 5 ,102,161. and highest compensated Complete Part II of Schedule employees Loans and other receivables from other disqualified persons 49581(1), persons described in section 495B/C3B1and contributing employers and sponsoring organizations of section 501169) voluntary employees beneficiary ind under section organizations (see instructions) Completo Part of Scheda 7 Notes and loans receivable net 0. 8 Inventories for sale or use 0. 7 9 Prepaid expenses and deferred charges. 24.600. 8 29,808 10a Land, buildings, and equipment cost or 457.548.9 475, 630, other basis. Complete Part VI of Schedule D 100 b Less: accumulated depreciation. 7,213,502 ..... 10b 3,763, 14R 11 Investments - publicly traded securities 2.092,891. 100 3,450.354. 23,656.392 11 23, 761, 847. 12 Investments - other securities. See Part IV line 11. 31,374.12 35.332. 13 Investments - program.related. See Part IV line 11 560,289. 13 797.557. 14 Intangible assets 0. 14 15 Other assets See Part IV line 11. 89,310. 15 23, 218. 16 Total assets. Add lines 1 through 15 must equal line 34) 109.025,919. 16 17 Accounts payable and accrued expenses 9,132,944. 17 18 Grants payable 13, 294, 602.18 15,703. 19 Deferred revenue .................. 1.798,386. 19 20 Tax-exempt bond liabilities. 0. 20 21 Escrow or custodial account liability. Complete Part IV of Schedule 519, 211, 21 Loans and other payables to current and former officers, directors trustees, key employees, highest compensated employees and 0.22 disqualified persons. Complete Part II of ScheduleL... 0.23 23 Secured mortgages and notes payable to unrelated third parties... 0.24 24 Unsecured notes and loans payable to unrelated third parties. 25 Other liabilities including federal income tax payables to related third parties, and other liabilities not included on lines 17-24) Complete Part X 2,143, 126.25 1.970, 185. of Schedule D .......... 26,879,369.28 16,061.646. 26 Total liabilities. Add lines 17 through 25 X and Organizations that follow SFAS 117 (ASC 958), check here complete lines 27 through 29, and lines 33 and 34 28.915,697.27 31,794,369 52, 318, 603. 28 62. 139, 146. 27 Unrestricted net assets . 1.912,150.29 1,833,150. 28 Temporarily restricted net assets 29 Permanently restricted not assets................ 7.311 B, 440, 106. 22 and or Fund 230 31 32 33 34 Organizations that do not follow SFAS 117 (ASC 988), check here complete lines 30 through 34. Capital stock or trust principal, or current funds..... Paid-in or capital surplus, or land, building, or equipment fund, Retained earnings, endowment accumulated income, or other funds Total net assets or fund balances ......... Total liabilities and net assets/fund balances,.... 82,146,450. 33 109.025,819.34 95,766.665. 111,828,311. Form 990 (2015) Burce: Internal Revenue Service counting and Financial Reporting JUTTUJU FEEDING AMERICA Statements of Financial Position June 30, 2016 and 2015 (In thousands) 2016 2015 50.398 3.446 $ 40,645 3,468 26,036 5,102 160 23.122 3.467 289 482 81.204 20.242 4.912 75,916 20,329 11,472 638 23 485 89 3,450 $111,828 2,093 109.025 Assets Current assets Cash Short-term investments Contributions receivable.net Accounts receivable, nel Notes receivable, net Other assets Total current assets Long-term investments Contributions receivable.net Notes receivable, net Other assets Furniture and equipment, net of accumulated depreciation of $3,766 and $3,199 in 2016 and 2015, respectively Total assets Liabilities and Net Assets Current liabilities: Accounts payable and accrued expenses Deferred revenue Other obligations Current portion of leases payable Total current liabilities Leases payable, less current portion Other obligations Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $ 12,161 1,016 22,400 1.799 77 243 296 13,550 1.537 975 16,062 24.517 1.859 503 26.879 28.012 52.321 31,794 62,139 1.833 95,766 $111,828 1.813 82.146 109,025 Unrestricted te r est P oten $ 341 combo 23,00 Donds and Topicsoport 2288 2,363,38 ber Gonne Netwo Town Food procurement m 990 2015) Bart VII D LA, 2015 FORM 990 (PARTS VIII, IX, AND X) FEEDING AMERICA Statement of Revenue Check if Schedule o contains a response or note to any vine in This Part VI.. Und excluded from 517.556 18 Federated campaigns .. Membership dues.......... 1b Fundraising events ..... d Related organizations ........ 10 Government grants (contributions).. 10 + All other contributions gits, grants and similar amounts not included above. 112, 73, 73.80 Noncash contributions included in the 111 $ 2 26,692 h Total Add lines 1. Add lines 11 . . LLLLLLLLLLLL 2a E90 PROSENT BEVE b MEMER FEES C ONFERENCE REVENUE d INHEREST TNCOVE 3500, 3 All other program service revenue ..... Total Add lines 2a-21... Investment income (including dividends interest and other similar amounts)........ Income from investment of tax exempt bond proceeds. Royalties ........ o Rea c h Pensional SE303 6 10115 ba Gross rents ........ b Less: rental expenses ... 204, 255. C Rental income or (loss) . 46,501. d Net rental income ar (loss).. ... 7a Gross amount from sales of Secur i ) Other assets other than inventory b Less: cost or other basis and sales expenses.... C Gain or loss) ....... d Net gain or loss) ...... Ba Gross income from fundraising events (not including $ of contributions reported an ine 1c). See Part IV line 18 ......... b Less: direct expenses .......... C Net income or loss) from fundraising events.. Sa Gross income from gaming activities See Part IV. line 19 ...... b Less direct expenses .......... L Net income or loss) from gaming activities. I 10a Gross sales of inventory less returns and allowances .... . 2 b b Less: cost of goods sold ......... C Net Income or loss) from sales of inventory Fusiness Colle Miscellaneous Revenue 11a CANONS MATERIALE DEREN ETRE d All other revenue ... Total. Add lines 11a-11d. Total revenue. See instructions Form 990 (2015) . 12 FEEDING AMERICA, 2015 FORM 990 (PARTS VIII, IX, AND X) Page 10 36-3673599 For (2015) FEEDING AMERICA Partix Statement of Functional Expenses Section 501(c)(3) and 501(c)(3) organizations must complete all columns. All other organizations must complete column (A) Check if Schedule o contains a response or note to any ine in this part IX Do not include amounts reported on Nnes 6, 7, Total des Program Service 8b9b, and Tob of Part VII. Management 10,000. 1, 703, 723. 349,740. 2,269,589. 5,285,724. 145,935. 226, 416. 248, 160 302.540. 595.618. 414,935. 14,270. 153,092. 78, 179. 1 Gratis and other since to domestic bransons and comestic government de Parine21.... 2,336,741,082. 2,336,741,082. 2 Grants and other assistance to domestic 10,000 Individuals. See Part IV line 22, .. 3 Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV lines 15 and 16 4 Benefits paid to or for members . 5 Compensation of current officers, directors trustees, and key employees ...... 3,339,573. 1,286, 110. .. 6 Compensation not included above 10 disualised persons (as defined under section 495001) and persons described in section 495 0. 7 Other salaries and wages , 20,996,336. 13,441,023. & Pension plan accruals and contributions include section 401(k) and 403(b) employer contributions] 1,166,650. 718,175. 9 Other employee benefits. II. 2,419,445. 1.597,411. 10 Payroll ... 1.764,075. 1,100,980. 11 Fees for services inon employees a Management 0. b Legal ... 14.270. Accounting .... 153,092. d Lobbying 127,641. 127,641. e Professional funding service Se Pat V I T 2,483, 495. f Investment management fees 78, 179. 9 Other in TOUT de 10 ore 2 6.096,188. t ine 11 (Ala 10,760, 662. enses on 12 Advertising and promotion 3,202,786. 1,736,328. 13 Office expenses.. 1,028, 014. 721,803 14 Information technology... 5,732,424. 4,000,277. 15 Royalties...... 16 Occupancy ... 1,501,004 B2B,024 17 Travel 1,973, 106. 1,539,062. . . . - - - - 18 Payments of travel or entertainment expenses for any federal, state or local public officials 0. 19 Conferences, conventions, and meetings 1,530,784. 1,356, 486. 20 interest 0. 21 Payments to affiliates.............. 22 Depreciation, depletion and amortization.... 567,125. 430,797. 94,023. 53, 631. 23 insurance....... ..... " 24 Other expenses ieme con not covered above that miscelaneous penses in ine 24e. If line 24e amount exceeds 10% of Ine 25, column (A) amount latine 24. penses on schedule o a PRODUCE 19,435,856. 18,435,956. POSTAGE & PRINTING 8,927,957. DISASTER PURCHASES 389,476. 389,476. PROFESSIONAL DEVELOCMENT__ 197, 70e. 1B, 282. All other expenses --- - ------- 202, 790. 61.603. 25 Total functional expenses. Add Ines through 24+ 2,423,037.553.2, 390,690, 235. 26 Joint costs. Complete this line only if the organization reported in column (Bont costs from a combined educational campaign and fundraising solicitation Check here if following SOP 98.2 (A5C 958-720)...... 881,425. 2,674. 191, 491. 370, 365. 3,783,049. 1, 463,784 114, 720. 1, 361,792. 308, 752. 158, 189. 364.228. 275,955. 73,559. 100,740. 55, 166. 18, 450, 1,162. 21,942. 8.927.957. 142,548, 130,310. 7, 172, 292, 36,878. 10.877. 25.975,026. Form 990 2015 Source: Internal Revenue Service e rental & Nonprofit Entities, 18th Edition FEEDING AMERICA, 2015 FORM 990 (PARTS VIII, IX, AND X) FEEDING AMERICK Form 99D (2015) Part X Balance Sheet Check if Schedule contains a response of note to any line in this part X 36-3673599 Page 11 L Assets Cash -non-interest-bearing Sevings and temporary cash investments Beginning of End of yes 3 Pledges and grants receivable.net 9: 31 50,397.174. 1 4 0.644,516. 4 Accounts receivable, not 0. 2 Loans and other receivables from current and former officers, directors ....... 29.034.291. 3 37.507.788. trustees, key employees 3.681,950. 4 5 ,102,161. and highest compensated Complete Part II of Schedule employees Loans and other receivables from other disqualified persons 49581(1), persons described in section 495B/C3B1and contributing employers and sponsoring organizations of section 501169) voluntary employees beneficiary ind under section organizations (see instructions) Completo Part of Scheda 7 Notes and loans receivable net 0. 8 Inventories for sale or use 0. 7 9 Prepaid expenses and deferred charges. 24.600. 8 29,808 10a Land, buildings, and equipment cost or 457.548.9 475, 630, other basis. Complete Part VI of Schedule D 100 b Less: accumulated depreciation. 7,213,502 ..... 10b 3,763, 14R 11 Investments - publicly traded securities 2.092,891. 100 3,450.354. 23,656.392 11 23, 761, 847. 12 Investments - other securities. See Part IV line 11. 31,374.12 35.332. 13 Investments - program.related. See Part IV line 11 560,289. 13 797.557. 14 Intangible assets 0. 14 15 Other assets See Part IV line 11. 89,310. 15 23, 218. 16 Total assets. Add lines 1 through 15 must equal line 34) 109.025,919. 16 17 Accounts payable and accrued expenses 9,132,944. 17 18 Grants payable 13, 294, 602.18 15,703. 19 Deferred revenue .................. 1.798,386. 19 20 Tax-exempt bond liabilities. 0. 20 21 Escrow or custodial account liability. Complete Part IV of Schedule 519, 211, 21 Loans and other payables to current and former officers, directors trustees, key employees, highest compensated employees and 0.22 disqualified persons. Complete Part II of ScheduleL... 0.23 23 Secured mortgages and notes payable to unrelated third parties... 0.24 24 Unsecured notes and loans payable to unrelated third parties. 25 Other liabilities including federal income tax payables to related third parties, and other liabilities not included on lines 17-24) Complete Part X 2,143, 126.25 1.970, 185. of Schedule D .......... 26,879,369.28 16,061.646. 26 Total liabilities. Add lines 17 through 25 X and Organizations that follow SFAS 117 (ASC 958), check here complete lines 27 through 29, and lines 33 and 34 28.915,697.27 31,794,369 52, 318, 603. 28 62. 139, 146. 27 Unrestricted net assets . 1.912,150.29 1,833,150. 28 Temporarily restricted net assets 29 Permanently restricted not assets................ 7.311 B, 440, 106. 22 and or Fund 230 31 32 33 34 Organizations that do not follow SFAS 117 (ASC 988), check here complete lines 30 through 34. Capital stock or trust principal, or current funds..... Paid-in or capital surplus, or land, building, or equipment fund, Retained earnings, endowment accumulated income, or other funds Total net assets or fund balances ......... Total liabilities and net assets/fund balances,.... 82,146,450. 33 109.025,819.34 95,766.665. 111,828,311. Form 990 (2015) Burce: Internal Revenue Service counting and Financial Reporting JUTTUJU FEEDING AMERICA Statements of Financial Position June 30, 2016 and 2015 (In thousands) 2016 2015 50.398 3.446 $ 40,645 3,468 26,036 5,102 160 23.122 3.467 289 482 81.204 20.242 4.912 75,916 20,329 11,472 638 23 485 89 3,450 $111,828 2,093 109.025 Assets Current assets Cash Short-term investments Contributions receivable.net Accounts receivable, nel Notes receivable, net Other assets Total current assets Long-term investments Contributions receivable.net Notes receivable, net Other assets Furniture and equipment, net of accumulated depreciation of $3,766 and $3,199 in 2016 and 2015, respectively Total assets Liabilities and Net Assets Current liabilities: Accounts payable and accrued expenses Deferred revenue Other obligations Current portion of leases payable Total current liabilities Leases payable, less current portion Other obligations Total liabilities Net assets: Unrestricted Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $ 12,161 1,016 22,400 1.799 77 243 296 13,550 1.537 975 16,062 24.517 1.859 503 26.879 28.012 52.321 31,794 62,139 1.833 95,766 $111,828 1.813 82.146 109,025 Unrestricted te r est P oten $ 341 combo 23,00 Donds and Topicsoport 2288 2,363,38 ber Gonne Netwo Town Food procurement