Using the statements of financial position and activities, I am supposed to calculate the operating margin ratio, total margin ratio, return on assets ratio, and return on equity ratio for the Lafayette Film Center, but I am struggling with it,

et Asets Sales (S406,196)| CHAPTER 14 Fin 545 XHIBIT 14-7 Lafayette Film Center Statements of Financial Position as of December 31, 2021 and 2020 Assets Current Assets 2021 2020 Cash and cash equivalents Grants receivable 75,582 174,662 Inventory 562,696 137,858 Other receivables 50,400 59,508 Prepaid expenses 36,172 37,624 Total Current Assets 11,552 S 736,402 409,652 Long-Term Assets Conditional promises to give $ 264,514 488,530 Deposits 1,510 7,910 Property and equipment, net 9,336,672 9,278,616 Total Long-Term Assets $ 9,775,056 $9,602,696 Total Assets $10,339,098 $10,184,708 Liabilities and Net Assets Current Liabilities Accounts payable S 108,214 S 113,240 Accrued expenses 109,044 111,776 Deferred revenue 31,186 960,510 100,000 Line of credit 48,394 Current portion of capital lease obligations 51.100 $ 1,260,054 373,410 Total Current Liabilities Long-Term Liabilities: 88,638 36,596 Capital lease obligations less current portion 462,048 $1,296,650 Total Liabilities Net assets: $9,184,130 $ 8,777,934 Without Donor Restrictions 538,530 264,514 With Donor Restrictions $9,722,660 $9,042,448 Total Net Assets $10,184,708 $10,339,098 Total Liabilities and Net Assets The accompanying notes are an integral part of these statements. Financial Analysis PART V 546 EXHIBIT 14-8 Lafayette Film Center Statements of Activities for the Years Ended December 31, 2021 and 2020 Without Donor Restrictions 2020 2021 78,640 S $ 414,818 Revenue and Support 196,288 1,522,426 Theater admissions 61,350 139,684 Concession and caf sales 58,414 Memberships 68,180 140,616 Theater rental sales 47,710 Special events 45,726 62,006 Other programs 56,656 Interest and investment income 1,384,002 Sale of tax credits 3,016,550 1,061,762 Grants 1,129,112 360,104 Contributions $6,167,354 $3,676,690 Total Revenue and Support 1,826,578 274,016 Net assets released from restrictions $3,950,706 $7,993,932 Total Revenue and Other Support Expenses $3,640,634 $1,378,472 Program services 455,436 407,244 General administration Fund raising 260,832 302,384 Total Expenses $4,356,902 $2,088,100 Change in Net Assets (406,196) $5,905,832 Net assets-beginning of year 9,184,130 3,278,298 Net assets-end of year $8,777,934 The accompanying notes are an integral part of these statements. $9,184,130 6. Given your answers to questions 4 and 5, would you recommend that LFC reallocate some of its spending from program services to fundraising in 2022? Why or why not? 7. What was LFC's depreciation expense in 2020 and 2021? Which financial statement(s) provide this information? receivables turnover ratio and average collection period for 2021. a. Which revenue items will you exclude from the ratio? Why? b. What is LFC's receivables turnover ratio and average collection period for 2021? Are they favorable or unfavorable? Why? 8. Now that receivables constitute a much larger proportion of LFC's assets than in the past, the executive director has asked you to calculate the c. Would you recommend recalculating the receivables turnover ratio using the average of beginning-of-year and end-of-year receivables in the denominator? Why or why not? 3. Calculate the four profitability ratios presented in the chapter for LFC for 2021 and 2020 as well as the percent change in each from 2020 to 2021. By which measure did LFC's profitability deteriorate the most, and by how much? et Asets Sales (S406,196)| CHAPTER 14 Fin 545 XHIBIT 14-7 Lafayette Film Center Statements of Financial Position as of December 31, 2021 and 2020 Assets Current Assets 2021 2020 Cash and cash equivalents Grants receivable 75,582 174,662 Inventory 562,696 137,858 Other receivables 50,400 59,508 Prepaid expenses 36,172 37,624 Total Current Assets 11,552 S 736,402 409,652 Long-Term Assets Conditional promises to give $ 264,514 488,530 Deposits 1,510 7,910 Property and equipment, net 9,336,672 9,278,616 Total Long-Term Assets $ 9,775,056 $9,602,696 Total Assets $10,339,098 $10,184,708 Liabilities and Net Assets Current Liabilities Accounts payable S 108,214 S 113,240 Accrued expenses 109,044 111,776 Deferred revenue 31,186 960,510 100,000 Line of credit 48,394 Current portion of capital lease obligations 51.100 $ 1,260,054 373,410 Total Current Liabilities Long-Term Liabilities: 88,638 36,596 Capital lease obligations less current portion 462,048 $1,296,650 Total Liabilities Net assets: $9,184,130 $ 8,777,934 Without Donor Restrictions 538,530 264,514 With Donor Restrictions $9,722,660 $9,042,448 Total Net Assets $10,184,708 $10,339,098 Total Liabilities and Net Assets The accompanying notes are an integral part of these statements. Financial Analysis PART V 546 EXHIBIT 14-8 Lafayette Film Center Statements of Activities for the Years Ended December 31, 2021 and 2020 Without Donor Restrictions 2020 2021 78,640 S $ 414,818 Revenue and Support 196,288 1,522,426 Theater admissions 61,350 139,684 Concession and caf sales 58,414 Memberships 68,180 140,616 Theater rental sales 47,710 Special events 45,726 62,006 Other programs 56,656 Interest and investment income 1,384,002 Sale of tax credits 3,016,550 1,061,762 Grants 1,129,112 360,104 Contributions $6,167,354 $3,676,690 Total Revenue and Support 1,826,578 274,016 Net assets released from restrictions $3,950,706 $7,993,932 Total Revenue and Other Support Expenses $3,640,634 $1,378,472 Program services 455,436 407,244 General administration Fund raising 260,832 302,384 Total Expenses $4,356,902 $2,088,100 Change in Net Assets (406,196) $5,905,832 Net assets-beginning of year 9,184,130 3,278,298 Net assets-end of year $8,777,934 The accompanying notes are an integral part of these statements. $9,184,130 6. Given your answers to questions 4 and 5, would you recommend that LFC reallocate some of its spending from program services to fundraising in 2022? Why or why not? 7. What was LFC's depreciation expense in 2020 and 2021? Which financial statement(s) provide this information? receivables turnover ratio and average collection period for 2021. a. Which revenue items will you exclude from the ratio? Why? b. What is LFC's receivables turnover ratio and average collection period for 2021? Are they favorable or unfavorable? Why? 8. Now that receivables constitute a much larger proportion of LFC's assets than in the past, the executive director has asked you to calculate the c. Would you recommend recalculating the receivables turnover ratio using the average of beginning-of-year and end-of-year receivables in the denominator? Why or why not? 3. Calculate the four profitability ratios presented in the chapter for LFC for 2021 and 2020 as well as the percent change in each from 2020 to 2021. By which measure did LFC's profitability deteriorate the most, and by how much