Please answer the following questions about the consolidated financial statement
ID: 2486717 • Letter: P
Question
Please answer the following questions about the consolidated financial statements for WAMC. Please support your answers with specific references to WAMC’s financial statements and accompanying notes on http://www.guidestar.org/ViewEdoc.aspx?eDocId=2592274&approved=True 1) Did the auditors issue a qualified, unqualified or adverse opinion of WAMC’s financial position? Where did you find this information? 2) Does WAMC comply with Generally Accepted Accounting Principles in its treatment of bad debts? Be specific. Where did you find this information? What is the source of the information for your answer? 3) Was WAMC a net buyer or seller of investments (other than property and equipment) in fiscal year 2010? Support your answer with the appropriate numbers from the statements. Where did you find the information? 4) What was WAMC’s total change in net assets in fiscal years 2009 and 2010? Where did you find this information? 5) What was the largest single source of revenue and support for WAMC during fiscal year 2010? What percent of WAMC’s total revenue and support did that source represent in that fiscal year? Where did you find this information? 6) How much did “other support and revenue” increase between fiscal years 2009 and 2010? Where did you find this information? 7) What was the single biggest reason “other support and revenue” increased between fiscal years 2009 and 2010? Where did you find this information? 8) What percentage of WAMC’s total expenses was spent on broadcasting in fiscal year 2010? Where did you find this information? 9) What method of depreciation does WAMC use? What were its depreciation expenses for fiscal years 2009 and 2010? Where did you find the information? 10) How much did WAMC’s “First Amendment Fund” increase or decrease between June 30, 2009, and June 30, 2010? For accounting purposes, are these funds unrestricted, temporarily or permanently restricted? Support your answers with the appropriate numbers from the statements. Where did you find the information?
There are 10 questions which are supposed to be answered using the finanancial statements (2010 and 2009) and the notes which can be downloaded on http://www.guidestar.org/ViewEdoc.aspx?eDocId=2592274&approved=True
Explanation / Answer
Ans-
1.
Auditor issued an unqualified opinion on WAMC’s financial position.This information has been provided in INDEPENDENT AUDITOR'S REPORT.
As per this,
"In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of WAMC as of June 30, 2010 and 2009, and the changes in its net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America"
2.
No,it does not follow GAAP in respect of Bad debts.
it uses direct write-off method, however, Generally accepted accounting principles require that the allowance method is used to reflect bad debt expense.
it is been showed in NOTES TO FINANCIAL STATEMENTS -NOTE 1: ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES .
3.
It is a net seller of investment.As per cash flow-
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (608,888)
Proceeds from sale of investments 713,943
4.
CHANGE IN NET ASSETS BEFORE INVESTMENT TRANSACTIONS 69,496 60,541
REALIZED AND UNREALIZED GAINS (LOSSES) ON INVESTMENT TRANSACTIONS 67,097 (263,355) CHANGE IN NET ASSETS 136,593 (202,814)
This information is available in STATEMENTS OF ACTIVITIES Years Ended June 30, 2010, and 2009 .