Presented below are financial statements (except cash flows) for two not-for-profit organizations. Neither organization has any permanently restricted net assets. ABC Not-for-Profit XYZ Not-for-Profit Temporarily Statement of Activities Revenues Program service revenue Contribution revenues Grant revenue Unrestricted Restricted Unrestricted Temporarily Restricted $5,595,000 3,327,500 $ 750,000 96,000 $2,250,000 3,200,000 $1,025,000 Net gains on endowment investments Net assets released from restriction 17,500 Satisfaction of program restrictions Total revenues Expenses 450,000 9,390,000 (450,000) 396,000 377,000 5,827,000 (377,000) 648,000 Education program expenses 5,621,000 1,559,000 Research program expense 1,256,000 2,256,000 Total program service expenses 6,877,000 3,815,000 Fund-raising 456,000 Administration 650,000 356,000 1,229,000 Total supporting service expenses 1,106,000 1,585,000 Total expenses 7,983,000 5,400,000 Increase in net assets 1,407,000 396,000 Net assets January 1 Net assets December 31 4,208,000 759,000 $5,615,000 $1,155,000 427,000 1,037,500 $1,464,500 648,000 320,000 $ 968,000 Statement of Net Assets Current assets Cash Short-term cash equivalents Supplies inventories Receivables Total current assets Noncurrent assets Noncurrent pledges receivable Endowment investments Land, buildings, and equipment (net) Total noncurrent assets Total assets Current liabilities Accounts payable Total current liabilities Noncurrent liabilities Notes payable Total noncurrent liabilities Total liabilities Net Assets Unrestricted Donor restricted for purpose ABC Not-for-Profit $ 205,000 265,000 32,000 439,500 XYZ Not-for-Profit $ 356,000 99,000 150,000 188,500 793,500 941,500 265,000 2,590,000 3,175,000 6,030,000 $6,971,500 $ 23,000 23,000 1,768,000 1,768,000 $2,561,500 $ 129,000 129,000 178,500 178,500 201,500 129,000 4,025,000 2,364,500 155,000 2,590,000 68,000 2,432,500 Donor restricted for endowment Total net assets 6,770,000 Total liabilities and net assets $6,971,500 $2,561,500