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E1-1 (Characteristics of not-for-profit and governmental entities) The mayor of a large city approaches a group of citizens and suggests that they form and organization to provide social, educational, and recreational programs for local youth. The group agrees and forms an entity called the Community Youth Organization (CYO). The group also chooses a board of directors, and the board hires an executive director and several staff members. CYO's activities are financed entirely by grants from the city, and many of CYO's programs are held after school hours in the high school. Is the CYO a not-for-profit or a government organization? Why? What changes in characteristics would be needed to change it from one type of entity to the other? E1-2 (Accounting standards-setting bodies) Three accountants started talking about hospitals. One said he was treated at a not-for-profit hospital, another said she was treated at a county hospital, and the third said he had just returned from the hospital run by the U.S. Veterans Administration. They wondered why three different bodies established accounting standards for hospitals. Give reasons for and against the existence of three accounting standards-setting bodies. Several not-for-profit organizations use television campaigns to obtain pledges to contribute cash. Some people think that not-for-profit entities should recognize pledges as revenues when the cash is actually received. Others would recognize revenues when the pledges are made, subject to a provision for amounts not likely to be collected. Based on that scenario, discuss (a) the need for an accounting standards-setting body, (b) the qualifications that members of that body should possess, and (c) the procedures that body should adopt in establishing accounting standards.
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For Warren Corporation, year-end plan assets were $2,144,800. At the beginning of the year, plan assets were $1,755,200. During the year, contributions to the pension fund were $120,000, and benefits paid were $200,000.
Prepare a schedule of cash flows from operating activities using the indirect method- Explain your answers and show any calculations necessary to arrive at your answers.
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Computer Boutique sells computer equipment and home office furniture. Currently, the furniture product line takes up approximately 50% of the company's retail floor space.
Discuss any trends in the net cash provided in operating, investing and financing activities for Home Depot and Lowes in FYE2008.
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