Problem 4.3

Instructor Instructions:

Use the balance sheet equations to solve for the unknown values related to the net assets at Dec. 31, 2019 and Dec. 31, 2020. Compute the difference in net assets for the two years.

Do the net assets increase or decrease from 2019 to 2020?

Difference = net income or net loss for the year 2020.

Assume there are no donor restricted contributions in this case.

Once you know the net income or net loss for 2020, you can solve for the unknown income statement value (whether the problem is asking for you to compute the revenues or expenses.

Year 1 Year 2 Year 3 Loan Repayment Schedule: Interest on loan Principal repayment $ 20,000 EXHIBIT 4.3 Sunnyvale Clinic: Bank Loan with Three-Year Maturity $ 30,000 100,000 $ 10,000 100,000 100,000 Total payment $130,000 $120,000 $ 110,000 Year 1 Year 2 Year 3 Loan Repayment Schedule: Interest on loan Principal repayment $ 20,000 EXHIBIT 4.3 Sunnyvale Clinic: Bank Loan with Three-Year Maturity $ 30,000 100,000 $ 10,000 100,000 100,000 Total payment $130,000 $120,000 $ 110,000