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Please help me understand how to answer worksheet 8.3,8.4 and 8.5. Thank you. Worksheet 8.3 (prior year statement of activities by account categories): Use the
Please help me understand how to answer worksheet 8.3,8.4 and 8.5. Thank you.
- Worksheet 8.3 (prior year statement of activities by account categories):
- Use the June 30, 2011 column of the trial balance under Table 8.14 on pages 177-8 to complete this worksheet. You'll need to add together accounts for each category. For example, Government Grants = Acct. 4101 through 4103.
- Enter amounts in thousands. For example, $79,451.25 will be $79.
- Check Figures: Revenue less expenses = $35.
- Worksheet 8.4 (prior year statement of activities allocated out to programs and support categories):
- Using the trial balance from Table 8.14, allocate each line over its programs and support subcategories.
- For example, Government Grants will be accounts 4101 through 4103, but only 4101 and 4102 go under the HOPE column. 4103 goes under CARE.
- Add together the two subcategory (program and support) column totals to reach the Total column amounts at the far right. This column will tie to the 2011/10 revenues and expenses in Worksheet 8.3.
- Check Figures: "Hope" revenue less expenses = $106, the "Support" subtotal revenue less expenses = $(151) and the Total Column revenue - expenses = $35.
- Worksheet 8.5 (upcoming year statement of activities budget = prior year adjusted for changes in upcoming year):
- Input all the numbers from Worksheet 8.4.
- As you make the following changes, take notes on what you are changing and why. This will help with the recommendations section at the end!
- Then adjust (reduce) the revenues for the changes listed in instruction #5 at the bottom of page 180. These changes affect the HOPE program and Admin. support.
- Then adjust the revenues in the CARE program to maximize the revenue possibilities listed in Table 8.16 on page 182.
- Consider other realistic possibilities for increasing revenues through special events, etc... and reflect them in the worksheet.
- Based on these changes, adjust the expenses in a reasonable manner to reflect the above changes in revenue.
- You need to adjust the expenses in a thoughtful and strategic manner to get to a breakeven ($0) "revenues less expenses" in the Total column.
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