Use the information in the trial balance tab to prepare the following financial statements:

1. Statement of Financial Position Use the data provided in the trial balance to complete this statement.

2. Statement of Activities In addition to the information provided from the trial balance, use the following information to prepare the Statement of Activities. a. Salaries and Fringe Benefit Expenses were allocated to Program Services and Supporting Expenses in the following percentages: I. Program 1: 40% ii. Program 2: 20% iii. Program 3: 10% iv. Management and General: 20% v. Fund-Raising: 10% b. Rent and Utility, Supplies, Printing and Publishing, and Telephone and Postage Expenses were allocated in the same manner as Salaries and Fringe Benefit Expenses. c. Depreciation Expense was divided equally to each functional expense category.

3. Statement of Cash Flows In addition to the information provided from the trial balance and the information prepared in the Statement of Financial Position and Statement of Activities, use the following information to prepare the Statement of Cash Flows. a. The organization had $163,314 of cash on hand at the beginning of the year. b. During the year, the organization received cash from contributors: $340,800 that was unrestricted and $38,100 that was restricted for the purchase of equipment for the center. c. It had $11,200 of income earned and received on long-term investments. d. The organization spent cash of $288,410 on salaries and fringe benefits, $22,000 on the purchase of equipment, and $86,504 for operating expenses. e. Other pertinent information follows: net pledges receivable increased $6,000, inventory increased $1,000, accounts payable decreased $102,594, and there were no salaries payable at the beginning of the year.

Cash (debit): $156,500 Pledges Receivable-Without Donor Restrictions (debit) $41,000 Estimated Uncollectible Pledges (credit) $4,100 Inventory (debit) $2,800 Investments (debit) $178,000 Furniture and Equipment (debit) $210,000 Accumulated Depreciation-Furniture and Equipment (credit) $120,000 Accounts Payable (credit) $20,520 Net Assets Without Donor Restrictions (credit) $196,500 Net Assets With Donor Restrictions-Programs (credit) $50,500 Net Assets With Donor Restrictions-Permanent Endowment (credit) $140,000 Contributions-Without Donor Restrictions (credit) $378,820 Contributions-With Donor Restrictions-Programs (credit) $38,100 Investment Income-Without Donor Restrictions (credit) $11,200 Depreciation Expense (debit) $30,000 Printing and Publishing Expense (debit) $4,190 Rent and Utility Expense (debit) $32,000 Salaries and Fringe Benefit Expense (debit) $288,410 Supplies Expense (debit) $5,940 Telephone and Postage Expense (debit) $4,500 Utilities Expense (debit) $6,400

Totals (debit) $959,740 (credit) $959,740

A. Create financial reports for your second year of operations. * Use the information provided to create a: Create a Statement of Financial Position Create a Statement of Activities Create a Statement of Cash Flows B. Discuss your annual filing requirements needed to keep the nonprofit status. * Identify federal legal filing requirements. * Identify federal tax requirements.