The Lancaster Relief Foundation (LRF) Is a Privately Funded Voluntary

The Lancaster Relief Foundation (LRF) is a privately funded voluntary health and welfare organization. Its trial balance at the beginning of the year is as follows:
$$\begin{array} { | l | c | } \hline & \text { Dr (Cr) } \\\hline \text { Cash } & \$ 395 \\\hline \text { Contributions receivable } & 460 \\\hline \text { Investments } & 200 \\\hline \text { Buildings \& equipment, net } & 540 \\\hline \text { Accounts payable } & (160 ) \\\hline \text { Net assets without donor restrictions } & ( 680 ) \\\hline \text { Net assets with do nor restrictions } & \underline { ( 755 )} \\\hline \text { Total } & \underline { \underline { \$0} } \\\hline\end{array}$$ The following events occurred during the year:
1. Cash contributions of $3,000 were received. They consist of:
(a) $1,500 received from the public as general contributions,
(b) $600 received from a grant to support programs to finance higher education for single parents, and
(c) $900 received as a permanent endowment; this money was invested in securities, and the donor specified that investment income and gains and losses are to be used to support LRF's programs to provide tutoring in the public schools.
2. LRF received payments of $50 on contribution promises made in previous years. The present value of these promises increased by $35. Additional documented promises, with a present value of $95, were received at the end of the current year.
3. At the end of the year, the fair value of LRF's investments in 1(c) is $920. Investment income on the securities is $25, all received in cash. The investments on hand at the beginning of the year were investment of excess cash, sold during the year for $210.
4. Expenses for the year were as follows: $$\begin{array} { | l | r | } \hline \text { Educational programs } & \$ 1,050 \\\hline \text { Financial relief programs } & 930 \\\hline \text { Administrative } & 370 \\\hline \text { Fund-raising } & 65 \\\hline \text { Total } & \$ 2,415 \\\hline\end{array}$$ These expenses were paid in cash, except for $200 still owed on purchased supplies, salaries, etc., and $60 in depreciation on buildings and equipment, which is included as part of administrative expense. All unpaid bills outstanding at the beginning of the year were paid during the year.
5. $20 of the investment income in Item 3 above was used for tutoring expenditures, and $450 of the government grant in 1(b) above was used for financial relief programs. All these expenditures are already included in the expenses listed above.
Required
Prepare the following financial statements for Lancaster Relief Foundation for the current year:
a. Statement of activities
b. 1. Statement of cash flows, using the direct method for the operating activities section.
2. Cash from operating activities section of the statement of cash flows, using the indirect method.