The $40,000 earnings form the endowment fund would first be classified as temporarily restricted until they are spent for use on programs for the disadvantaged.

Next, the nfp generated $43,000 in fees (these are classified as unrestricted) and incurred $58,000 in costs.

Basically, it is assumed that the $40,000 endowment fund earnings are first applied to the $58,000 service costs. After the endowment fund earnings are used up, the $43,000 in fees the nfp generated are then used to cover the remaining costs. The left over cash is classified as unrestricted because it came from service fees.

58000 - 40000 - 43000 = $25,000 excess unrestricted cash

uh ok got it..thanks...am havinf FAR 1st oct...any last minuite suggestions...i see u hv done really well in FAR.

I solved beckers final test 1 got avg abt 76%..

hv to solve the other final test..

also i cant open the cpa.org sample tests...my computer shows some prob while installn...do u hhv those ssample tests in pdf format then u can mail them to me on palak12@hotmail.com