Missouri. The leaders of these two organizations have decided to combine forces on January 1, 2020, in order to have a bigger impact from their work. They are currently discussing ways by which this combination can be created. The following are statements of financial position for both charities at that date. HELP & SAVE Statement of Financial Position January 1, 2020 Assets Cash $1,660,000 Contributions receivable (net) 82,000 Investments 330,000 Buildings & equipment (net) 730,000 Total asset $2,802,000 Liabilities Accounts payable and accrued liabilities $140,000 Notes payable 1,130,000 Total liabilities $1,270,000 Net Assets Net assets without donor restrictions $1,160,000 Net assets with donor restrictions 372,000 Total net assets $1,532,000 Total liabilities and net assets $2,802,000 SWIX FOR SAFETY Statement of Financial Position January 1, 2020 Assets Cash $560,000 Contributions receivable (net) 222,000 Investments 200,000 muilding equipment (net) 620,000 Total assets $1,602,000 Liabilities Accounts payable and accrued liabilities $130,000 Notes payable 650,000 Total liabilities $780,000 Net Assets Net assets without donor restrictions $450,000 Net assets with donor restrictions 372,000 Total net assets $822,000 Total liabilities and not assets $1,602,000 The buildings and equipment reported by Help & Save have a fair value of $936,000. The buildings and equipment reported by Swim For Safety have a fair value of $754,000. Required: a. Assume Help & Save pays $106 million in cash from its net assets without donor restrictions to gain complete control over Swim For Safety, if it is not assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future, what balances will appear on the statement of financial position immediately after control is gained? (Enter your answers in dollars not in millions of dollars.) b. Assume Help & Save pays $1,019,000 in cash from its net assets without donor restrictions to gain complete control over Swim For Safety. It is assumed that Swim For Safety will be predominantly supported by contributions and investment income in the future. What balances will appear on the statement of financial position immediately after control is gained? HELP & SAVE Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buildings & equipment (net) Total assets Liabilities Aco payable and accrued liabilities Noles payable Total abilities $ $ 0 Net Assets Net assets without donor restrictions Net assets with donor restrictions Total net assets Total liabilities and not assets $ 0 $ 0 c. Assume that these two organizations are combined into a new private not-for-profit entity to be known as Help-Swim-Save. A new governing body will be formed to manage and operate this new organization What balances will appear on the statement of financial position immediately after control is gained? HELP-SWIM SAVE Statement of Financial Position January 1, 2020 Assets Cash Contributions receivable (net) Investments Buldings & equipment (net) Total assets Llabilities Accounts payable and accrued abilities Notes payable Total limbiies Net Assets Net assets without donor restrictions Nesses with donor restrictions Tot neastes $ 0 Totallables and met asets $
