What are GAAP requirements for preparing financial statements?

What are GAAP requirements for preparing financial statements? (100 points)

Scenario 3:

Use the following adjusted trial balance for Decatur Health Clinic to Create a statement of financial position, statement of functional expenses, statement of activities, and statement of cash flows in Microsoft Excel. Use formulas to link data when necessary.

Download the Decatur Health Clinic Adjusted Trial Balance at the bottom of the page.

Prepare all financial statements as of June 30, 20X7 including the following transactions.

• There were five functional expense categories, which salaries and fringe benefits totaling $288,410 were allocated to with the following percentages: counseling services, 30%; professional training, 25%; community service, 15%; management and general, 20%; and fund-raising, 10%.
• Occupancy and utility, supplies, printing and publishing, and telephone and postage expense were allocated to the programs using the same allocation procedures.
• The five expense categories received equal amounts of depreciation expense.
• Decatur Health Clinic had $162,150 of cash on hand at the beginning of the year and received cash from contributors of $305,200, which was unrestricted. $38,100 was restricted for the purchase of a machine for the clinic.
• Income earned and received on long- term investments was $9,200.
• The purchase of the machine for the clinic was $22,000 and $82,500 for operating expenses.
• Net pledges receivable increased $6,000, inventory decreased $1,000, accounts payable decreased $102,500, and there were no salaries payable at the beginning of the year.

Paper Requirements:

• Submit your responses to the questions in a 10-12-page Microsoft Word document. Include applicable heading for each set of questions and label each question clearly. Include computations in a table and show work.
• For written answers, ensure your responses are well-written.
• Be sure to follow the formatting guidelines outlined in the CSU-Global Guide to W