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Analyzing Financial Statements - Final Due Feb 20 2011

Analyzing Financial Statements - Final Due Feb 20 2011 -...

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A n a l y z i n g F i n a n c i a l S t a t e m e n t s P a g e | 1 Analyzing Financial Statements HSM/260 Axia College Tracy Parker February 20, 2011

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A n a l y z i n g F i n a n c i a l S t a t e m e n t s P a g e | 2
A n a l y z i n g F i n a n c i a l S t a t e m e n t s P a g e | 3 Analyzing the financial statements is critical and needed in any organization within the human service field. The main advantage of having a financial statement is the organization can analyze its overall performance over a certain period of time. Another advantage that providing financial statements would be is it allows organizations and individuals the financial information that they may require so that they understand the company in which they are donating their money to. The following are the calculations for the XYZ organization for the following years 2003 and 2004. The information provided is the current ratio, long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, and revenue/expense ratio.

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A n a l y z i n g F i n a n c i a l S t a t e m e n t s P a g e | 4 2003 -2004 Calculations Current Ratio 2003 Current Assets \$82,058.00 0.875 Current Liabilities \$93,975.00 Current Ratio 2004 Current Assets \$302,902.00 0.898 Current Liabilities \$337,033.00 Long Term Solvency Ratio 2003 Total Assets \$359,863.00 1.38 Total Liabilities \$259,979.00 Long Term Solvency Ratio 2004 Total Assets \$699,004.00 2.06 Total Liabilities \$338,937.00 Contribution Ratio 2003 Largest Revenue Source \$632,889.00 0.508 Total Revenues \$1,244,261.00 Contribution Ratio 2004 Largest Revenue Source \$1,078,837.00 0.492 Total Revenues \$2,191,243.00 Programs/Expense Ratio 2003 Total Program Expenses \$945,580.00 0.718 Total Expenses \$1,316,681.00 Programs/Expense 2004 Total Program Expenses \$1,526,312.00 0.773 Total Expenses \$1,972,131.00 General and Management/Expense Ratio 2003 Total General & Management Expenses \$317,101.00 0.24 Total Expenses \$1,316,681.00 General and Management/Expense Ratio 2004 Total General & Management Expenses \$445,819.00 0.226 Total Expenses \$1,972,131.00 Revenue / Expense Ratio 2003 Total Revenues \$1,244,261.00 0.952 Total Expenses \$1,316,681.00 Revenue / Expense Ratio 2004 Total Revenues \$2,191,243.00 1.111 Total Expenses \$1,972,131.00
A n a l y z i n g F i n a n c i a l S t a t e m e n t s P a g e | 5 The following is calculations of ratios for the fiscal year of 2002 so that we can determine if the financial picture of the organization has improved or not within the three-year period as specified in Appendix D. 2002 Calculations Current Ratio 2002 Current Assets \$104,296.00 0.75 Current Liabilities \$139,017.00 Long Term Solvency Ratio 2002 Total Assets \$391,270.00 1.261 Total Liabilities \$310,246.00 Contribution Ratio 2002 Largest Revenue Source \$617,169.00 0.529 Total Revenues \$1,165,065.00 Programs/Expense Ratio 2002 Total Program Expenses \$834,008.00 0.703

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