Directions: Answer the following questions using the Baruch College Fund’s Audited
Financial Statements. Answers are due November 10, 2011 at 6:05 pm. If you decide to
e-mail the test to me instead of turning in a hard copy, you are responsible for its format.
I will print it “as is.” You will lose points if you do not put your name on it. Please treat
this as you would a work assignment.
Change date for exam!
1. (1 point) What type of opinion did the auditors give the BCF’s financial position?
How do you know? Does this mean the BCF financial statement reflect no errors?
2. (2 points) What are the BCF’s two largest sources of total income in 2010? Use
common-size ratios to show their importance to the BCF revenue portfolio.
Provide year-over-year percentage increases for each.
3. (2 points) In 2010, did the BCF sell more investments than it purchased
(excluding artwork)? In 2009? Support your answer with numbers from the
financial statements and indicate from where you derived the information.
4. (2 points) What is the BCF’s current ratio for both 2010 and 2009 (note:
Investments are long-term)? What is the quick ratio (excluding any receivables)
for those years? How do these two measures of liquidity compare to each other?
How would you assess the BCF’s liquidity overall?
5. (1 point) Does the BCF have bank accounts that exceed federal deposit insurance
limits? How do you know?
6. (2 points) What were the BCF’s operating (unrestricted) margins for 2010 and
2009? How much did it change (number and percent) from 2009 to 2010?
7. (1 point) How much did the BCF spend on salaries and benefits as a percentage of
expenses in 2010 and 2009? What was the percent change between the two years?
8. (1 point) What was the BCF’s program expense ratio for 2010 and 2009? Where
did you find this information?
9. (1 point) Calculate BCF’s Debt to Assets ratio for 2010 and 2009. Use Total
Liabilities in your calculation for Debt.
10. (1 point) Calculate BCF’s Days of Cash on Hand for 2010 and 2009. Is the trend
favorable? Most nonprofit financial experts suggest that organizations maintain 2-
3 months of cash on hand for emergencies. How does this ratio compare to this
rule of thumb?
11. (1 point) Does the BCF report any unrestricted or board-designated contributions
in its endowment? How do you know?
