Leprechaun Film Center (LFC) is a not-for-profit theater that presents independent films. In addition to revenue from theater admissions, LFC relies on concession and caf sales, grants and other external support theater rental sales, and proceeds from special events and other programs that not only promote appreciation for independent films, but also generate grants and contributions. LFC's new Executive Director has asked you to provide an analysis of the organization's financial position Refer to Exhibits 1 and 2, these exhibits present LFC's Statement of Financial Position and Statement of Activities for the years ended December 31, 2021 and 2020 1. When looking at the Current Asset section of the Statement of Financial Position, what stands out to you? 2. How much of LFC's net assets with donor restrictions were reclassified as without donor restrictions in 2021? Where can this be found in the Statements of Financial Position and Statements of Activities? 3. Cakulate the profitability ratio, discussed in class, for LFC for 2021 and 2020. If there is a difference between the two years, why do you think that is? 4. LEC's total expenses grew significantly from 2000 to 2021, while its total revenue and other support declined significantly. Answer the following questions using the theater's Statements of Activities: a. Excluding interest/investment income and the one-time sale of tax credits, which three revenue or support categories declined the most from 2020 to 2021? b. Which expense category grew the most? 5. Calculate UFC's program expense ratio for 2021 and 2020. s LFC's program services ratio for 2021 higher than the commonly accepted benchmark? What is the reason for the difference between 2021 and 20202 6. Given your answers to question 4 and 5 above, would you recommend that LFC reallocate some of its spending from program services to fund raising or general administration in 2022? Why or why not? 7. Now that receivables constitute a much larger proportion of LFC's assets than in the past, the Executive Director has asked you to calculate the Days in Receivables ratio for 2021 2. Which revenue items will you exclude from the ratio? Why? 6. What is LFC's Days in receivables ratio for 2021? Is it favorable or unfavorable? Why? 8. Calculate the current ratio and total debt abilities to net assets ratio for IFC for 2021 and 2020. Are these trends favorable or unfavorable? Which presents the greater area of concern for 2021, and why? 9. Calculate the days of cash on hand ratio for UFC for 2021 and 2020. Assume that there are no marketable securities or bad debit expense. The depreciation expense for each year was 5624,356 for 2021 and $107,900 for 2020. Is the trend favorable or unfavorable? Why? > 10. Given your answers to the questions above and an overall new of PCs financial statements, would you characteriseres financial position as weak, neutral or rond Why? EXHIBITNI Leprechaun Film Center Statements of Financial Position December 31, 2021 and 2020 2021 2020 ASSETS Current Cash and Grants Receivable Or Reveals 5 75,50 SM 36172 50.400 1112 1340 17 39634 59. S2 Prepaid Expenses Total Curses Long Term Assen edges Recht Depois Property Total Tom 16514 S10 1673 7,910 9.22616 Sins. 1 MUS 10, T14, 205 5 100.2145 109,00 31,186 115.20 111.7M 31.100 00.000 14 373.410 Totale LIABILITIES AND NET ASSETS Current Libilities Accounts Payable Accred Expert Delad leveme Line of Credit Cument Pontice of capital solito TO C Long Termini Capillas Ollobe current Toutes Netic Without Door Restriction With Doner Restrict Taal Ned Ave 5 1605 1.772,054 364514 9.74 9.18410 5.5 0722660 10 114708 Tuollbillies so Net Act 10.33905 EXHIBIT #2 Leprechaun Film Center Statements of Activities Years Ended December 31, 2021 and 2020 Without Donor Restrictions 2001 2020 $ REVENUE AND SUPPORT **Theatermissions ** Concession and call sales ** Memberships The estas Special Events Other Interest invest income Sale of Tax Credits Grunts Contributions Tool Rescue and Support 4148185 1.53246 139.684 OLIM 47.710 9.006 7.60 1:06,268 61,350 58,614 140616 45.726 56.656 1314.00 3,016550 1.139.112 6.167354 1,061,762 366104 6760 214016 L1575 $ 3.950.7065 7.903932 5 Netts released from restrictions Total Revenue and Support EXPENSES Progrn Services Gel Administration Fund Raising Totul penes Change in Net Ass NetAsset Beginning of Year 3.6606343 455.436 1.372472 107,241 3034 SODO 4142 (06.1965) 595.832 184,130 1,272 5 8,777,935 9,134 130 Net Assad of Year * These items representa casales Leprechaun Film Center (LFC) is a not-for-profit theater that presents independent films. In addition to revenue from theater admissions, LFC relies on concession and caf sales, grants and other external support theater rental sales, and proceeds from special events and other programs that not only promote appreciation for independent films, but also generate grants and contributions. LFC's new Executive Director has asked you to provide an analysis of the organization's financial position Refer to Exhibits 1 and 2, these exhibits present LFC's Statement of Financial Position and Statement of Activities for the years ended December 31, 2021 and 2020 1. When looking at the Current Asset section of the Statement of Financial Position, what stands out to you? 2. How much of LFC's net assets with donor restrictions were reclassified as without donor restrictions in 2021? Where can this be found in the Statements of Financial Position and Statements of Activities? 3. Cakulate the profitability ratio, discussed in class, for LFC for 2021 and 2020. If there is a difference between the two years, why do you think that is? 4. LEC's total expenses grew significantly from 2000 to 2021, while its total revenue and other support declined significantly. Answer the following questions using the theater's Statements of Activities: a. Excluding interest/investment income and the one-time sale of tax credits, which three revenue or support categories declined the most from 2020 to 2021? b. Which expense category grew the most? 5. Calculate UFC's program expense ratio for 2021 and 2020. s LFC's program services ratio for 2021 higher than the commonly accepted benchmark? What is the reason for the difference between 2021 and 20202 6. Given your answers to question 4 and 5 above, would you recommend that LFC reallocate some of its spending from program services to fund raising or general administration in 2022? Why or why not? 7. Now that receivables constitute a much larger proportion of LFC's assets than in the past, the Executive Director has asked you to calculate the Days in Receivables ratio for 2021 2. Which revenue items will you exclude from the ratio? Why? 6. What is LFC's Days in receivables ratio for 2021? Is it favorable or unfavorable? Why? 8. Calculate the current ratio and total debt abilities to net assets ratio for IFC for 2021 and 2020. Are these trends favorable or unfavorable? Which presents the greater area of concern for 2021, and why? 9. Calculate the days of cash on hand ratio for UFC for 2021 and 2020. Assume that there are no marketable securities or bad debit expense. The depreciation expense for each year was 5624,356 for 2021 and $107,900 for 2020. Is the trend favorable or unfavorable? Why? > 10. Given your answers to the questions above and an overall new of PCs financial statements, would you characteriseres financial position as weak, neutral or rond Why? EXHIBITNI Leprechaun Film Center Statements of Financial Position December 31, 2021 and 2020 2021 2020 ASSETS Current Cash and Grants Receivable Or Reveals 5 75,50 SM 36172 50.400 1112 1340 17 39634 59. S2 Prepaid Expenses Total Curses Long Term Assen edges Recht Depois Property Total Tom 16514 S10 1673 7,910 9.22616 Sins. 1 MUS 10, T14, 205 5 100.2145 109,00 31,186 115.20 111.7M 31.100 00.000 14 373.410 Totale LIABILITIES AND NET ASSETS Current Libilities Accounts Payable Accred Expert Delad leveme Line of Credit Cument Pontice of capital solito TO C Long Termini Capillas Ollobe current Toutes Netic Without Door Restriction With Doner Restrict Taal Ned Ave 5 1605 1.772,054 364514 9.74 9.18410 5.5 0722660 10 114708 Tuollbillies so Net Act 10.33905 EXHIBIT #2 Leprechaun Film Center Statements of Activities Years Ended December 31, 2021 and 2020 Without Donor Restrictions 2001 2020 $ REVENUE AND SUPPORT **Theatermissions ** Concession and call sales ** Memberships The estas Special Events Other Interest invest income Sale of Tax Credits Grunts Contributions Tool Rescue and Support 4148185 1.53246 139.684 OLIM 47.710 9.006 7.60 1:06,268 61,350 58,614 140616 45.726 56.656 1314.00 3,016550 1.139.112 6.167354 1,061,762 366104 6760 214016 L1575 $ 3.950.7065 7.903932 5 Netts released from restrictions Total Revenue and Support EXPENSES Progrn Services Gel Administration Fund Raising Totul penes Change in Net Ass NetAsset Beginning of Year 3.6606343 455.436 1.372472 107,241 3034 SODO 4142 (06.1965) 595.832 184,130 1,272 5 8,777,935 9,134 130 Net Assad of Year * These items representa casales