1. The Albany Youth Center (AYC) has an after-school contract with the city. Under the contract, MYC earns $3 per day for each child who uses the program. AYC served the number of children shown below. The city pays one-third of the amount AYC earns one quarter after the services are delivered, one-third two quarters after and one- third three quarters after.

a. How much can MYC expect to earn from the city during the fourth quarter?
b. How much can MYC expect to collect from the city during the fourth quarter?

2. Mead Meals on Wheels has a contract with the city to feed homebound elderly people. Under the contract, MMW earns $140 per month for each person enrolled in the program. MMW expects to deliver meals to the number of seniors shown below. The city pays one-half of the amount MMW bills one month after the services are delivered, and one-half two months after billing. It costs MMW $125 for food and fuel for each person it feeds. Suppliers demand payment one month after food and fuel is used. This is MMW's first year of operation. It started the year with $17,000 in cash.

a. What is MMW's expected surplus or deficit for the firstquarter based solely on contract revenue, food and fuel expenses?
b. What does MMW's expect its cash balance to be at theend of the first quarter based solely on contract revenue, food and fuel expenses?

3. The State University Research Foundation (SURF) expects to have the revenue and expenses shown in the operating budget below. The state research contract pays SURF two quarters after it is billed and the Foundation pays SURF one quarter after it is billed. Salaries are paid in the quarter the expense is incurred and supplies are paid for one quarter after they are used. Assuming SURF starts the 3rd quarter with $500, prepare a properly-formatted cash budget for the 3rd Quarter of the year.

4. The Teaching & Learning Research Center at UAlbany needs to prepare a budget for a research proposal to do an in-depth study of Rensselaer County's after-school programs. The County is willing to pay $17,500 for each site studied, up to 15 sites. A report must be submitted within a year of the start of the project.

Regardless of the number of sites, the Center will need a primary researcher at $60,000 per year and 2 associate researchers at $35,000 each per year to do the study. Supervising the site studies is the responsibility of the associate researchers. Each associate researcher will be able to supervise up to eight sites. Research assistants are needed to transcribe field notes and provide support for the associate researchers. These part-time research assistants are each paid $6,000 and are only able to support 3 site studies each. The center must budget 30% of the salary of the primary and associate researchers for fringe benefits.

Based on past experience, the Center estimates that it will need $2,500 for supplies. Researchers will have to travel to each research site. Each trip will cost $20 and the center expects that 40 trips will be made to each site during the study.

Prepare a budget of revenues and expenses for a study that includes 9 sites, 12 sites, and 15 sites.

Part 2. Financial Statement Analysis

Questions 1 to 12 refer to the 2010 annual report of WAMC - a region public radio station.

1. Did the auditors issue a qualified, unqualified or adverse opinion of WAMC's financial position?

2. Does WAMC comply with Generally Accepted Accounting Principles in its treatment of bad debts?

3. Was WAMC a net buyer or seller of investments (other than property and equipment) in fiscal years 2009 and 2010?

4. What were WAMC Current ratios for fiscal years 2009 and 2010?
Current ratio = current assets / current liabilities

5. What were WAMC's total debt-to-net-assets ratios for fiscal years 2009 and 2010? Be sure to exclude all non-debt liabilities from your calculations. Check the balance sheet
Debt to Net Assets = total debt / total net assets

6. What was the largest single source of revenue and support for WAMC during fiscal years 2009 and 2010? What percent of WAMC's total revenue and support did that source represent in each fiscal year? What was the percentage increase or decrease in that source between the two fiscal years? REMEMBER THE FORMULA TO GET % CHANGE IS (NEW-OLD)/OLD

7. How much did WAMC's total change in net assets increase or decrease between fiscal years 2009 and 2010? What were their operating margins in each of those fiscal years?

Operating margin = total increase in unrestricted net assets
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Total unrestricted revenue and support

8. How much did "other support and revenue" increase between fiscal years 2009 and 2010? REMEMBER THE FORMULA TO GET % CHANGE IS (NEW-OLD)/OLD

9. What was WAMC's program expense ratio for fiscal year 2010? Support you answer with all appropriate numbers.
Program expense ratio = program expenses / total expenses

10. How much did WAMC's "First Amendment Fund" balance increase or decrease between June 30 2009 and June 30, 2010? REMEMBER THE FORMULA TO GET % CHANGE IS (NEW-OLD)/OLD

11. What were WAMC's times-interest-earned ratios for fiscal years 2009 and 2010?

Times Interest Earned = (change in net assets + interest expense)
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interest expense

12. What method of depreciation does WAMC use? What were its depreciation expenses for fiscal years 2009 and 2010?