The CFO of your nonprofit left on vacation after preparing an income statement and balance sheet (See spreadsheet for Question 3), but nobody can find the cash flow statement and he cannot be reached. Your boss wants you to create a quick summary statement of cash flows for last year (i.e. Year 2020) to share with the board.

1. Derive a cash flow statement that includes operating, investing, and financing cash flows from the other two statements.
2. Based on the resulting statement, what concerns do you have about the organizations cash management decisions? What recommendations might you make to improve it?

D E 2018 2019 2020 $ 195,553 $ 177,953 $ 183,292 $ 128,000 $ 175,000 $ 249,000 $ 16,431 $ 5,530 $ 49,806 $ 339,984 $ 358,483 $ 482,098 $ $ $ $ $ $ $ $ $ $ 198,450 $ 244,373 $ 292,591 59,535 $ 73,312 $ 87,777 25,000 $ 25,000 $ 27,300 14,922 $ 14,623 $ 14,331 4,549 $ 4,867 $ 5,208 5,025 $ 5,578 $ 6,191 3,333 $ 3,333 $ 3,333 6,735 $ 6,398 $ 6,078 317,549 $ 377,484 $ 442,809 $ 22,435 $ (19,001) $ 39,289 A B 1 Questions 3 Income Statement and Balance Sheet 2 Income Statement 3 Revenues Fees 4 Grants 5 Investments 6 Total 7 8 Expenses Salaries 9 Benefits 10 Depreciation 11 Utilities 12 Supplies 13 Travel 14 Debt Service 15 Miscellaneous 16 Total 17 18 Change in Net Assets 19 20 21 Balance Sheet 22 Assets Cash 23 Marketable Securities 24 Accounts Receivable 25 Inventory 26 Property, Net 27 Long-term Investments 28 Total 29 30 Liabilities Accounts Payable 31 Mortgage 32 Refundable Advances 33 Uncollectable Accounts 34 Total 35 36 Net Assets 37 38 Clients Served 39 40 Staff, FTE 41 2018 2019 2020 $ 21,523 $ 35,352 $ 44,930 $ 80,376 $ 82,788 $ 85,271 $ 30,157 $ 28,950 $ 27,792 $ 24,610 $ 25,102 $ 25,604 $ 251,812 $ 249,812 $ 232,512 $ 841,552 $ 816,305 $ 857,121 $ 1,250,030 $ 1,238,309 $ 1,273,230 $ $ $ $ $ 34,440 $ 28,775 $ 5,000 $ 1,206 $ 69,421 $ 36,507 $ 27,108 $ 12,000 $ 1,086 $ 76,701 $ 38,697 25,442 7,000 1,194 72,333 $ 1,180,609 $ 1,161,608 $ 1,200,897 187 229 247 6 6 7 8