(7 points) Against the odds, you won the New York
State Lottery. The jackpot was advertised as $40 million. As the winner, you
are entitled to payments of $2 million at the beginning of each year for 20
years ($2 million x 20 years = $40 million).
If you know that you can earn 5% on your savings per
year, how much is the lottery prize worth to you?
offer you $25 million to take the prize now. Do you take the $25 million one-time
PERFORMING ARTS CENTER FINANCIAL STATEMENTS
Using the provided NORTH CAROLINA PERFORMING ARTS CENTER AT CHARLOTTE
FOUNDATION (referred to as NCPAC) Financial Statements for the Years Ended August
31, 2014 and June 30, 2013 answer the following questions:
(4 points) Who
performed the audit? What was their opinion? What does this type of opinion
(2 points) For
which revenue or support line item, would a 10% decline create the greatest
financial problem for NCPAC? Why?
Calculate the ratio of program expenses to total expenses for 2014 and 2013. Does this seem reasonable?
(1 point) In
2014 NCPAC shows a substantial increase in operating revenue. Does this nearly
20% increase in revenue and support translate into substantially better
financial results? Why?
(10 points) Create a table of common sized
assets and liabilities for the statement of financial position.
(14 points) Calculate
the following ratios: current, quick, days of cash on hand, receivables
turnover, average collection period, fixed asset turnover, total asset
turnover, debt, debt to equity, times-interest earned, operating margin, total
margin, ROA, RONA
(3 points) Is
there anything that you see in the other portions of the financial statements
(Notes, Statement of Cash Flows, etc.) that may be of concern?
(8 points) Write a memo that reflects your
evaluation of the financial status of NCPAC.
In the conclusion, please provide a recommendation to management on the