Week 9 Final: Analyzing Financial Statements
March 1, 2015
Calculation for 2003 and 2004:
| 2002 | 2003 | 2004 | |
Current Ratio | 0.75 | 0.87 | 0.9 | |
Long Term Solvency | 1.26 | 1.38 | 2.06 | |
Contribution Ratio | 0.53 | 0.51 | 0.49 | |
Programs/Expense Ratio | .07 | 0.72 | 0.23 | |
Gen/MGT Expense Ratio | 0.3 | 0.28 | 0.23 | |
Revenue/Expense Ratio | 0.98 | 0.94 | 1.11 | |
| | | | |
Fixed Cost | $642,903.00 | $624,989.00 | $735,818.00 | |
Variable Cost | $542,105.00 | $691,692.00 | $1,236,313.00 | |
Break-Even Point | $6,152.77 | $7,715.00 | $9,111.00 | |
| | | | |
Payroll and Benefits | $417,004.00 | $520,069.00 | $915,787.20 | Variable |
Supplies | $125,101.20 | $171,622.77 | $320,525.52 | Variable |
Rent & Utilities | $150,000.00 | $150,000.00 | ...view middle of the document...
Include a statement of whether the organization’s financial picture has improved or not within the 3-year period specified in Appendix D.
A nonprofit attempts to make as much money as possible to keep the organization running and to continue success. Whether the organization chooses to utilize Cash Basis or Accrual Basis the accounting process will be essential and must be effective. The financial aspect to any organization is very important. The ratio is a part of the financial functions of the business and is a very vital factor. The overall financial picture for the XYZ organization indicates that the current liabilities were greater than the organizations current assets. With the liabilities being greater than the organizations assets could be a red flag in terms of the organizations ability to fulfill their financial responsibilities. The long-term solvency indicates that the organization has improved each year. In 2004 was the highest increase of all three years. This shows continued growth
Calculate the fixed cost, variable costs, and break-even point for the XYZ Corporation for the years 2003 and 2004 listed in Appendix D.
Include the fixed cost, variable costs, and break-even point for the XYZ Corporation for the year 2002 from the Week Six Checkpoint.
Discuss the purpose, advantages, disadvantages, and type of feedback provided by a line item, performance, and program budget in a 350- to 700-word essay.
Provide a 350- to 700-word response to the following: Identify and describe two types of traditional approaches to fund development, and two types of nontraditional approaches to fund development that are appropriate for the XYZ Corporation, and provide a conclusion of the organization’s current and future financial picture.
Format all written portions consistent with APA guidelines.
Compile all elements, including portions previously completed, and submit them as attachments to the same post.