formulas for final exam

formulas for final exam - measure your ability to pay off...

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****Ask the ? would you donate to this org? Pg 285: 3 major ratios are used by donors to measure performance. **Always consider endowments to be restricted b/c most of them are Program Ratio is the % of resources spent on direct program services to clients, rather than indirectly on management and fundraising. The higher the better: 75% PLUS Line 13 program expenses Line 17 overall expenses Fundraising Administration Ratio is the % spent on fundraising, the lower the better. Line 15 fundraising expenses Line 17 total expenses ***Fundraising expenses are considered operating expenses. Margin Ratios, pg 288 are ratios that determine whether you can face uncertainties. If it’s positive, then your operating revenues are more than your expenses, but if its negative, you have more expenses. This is a good ratio to use when comparing trends. Line 18 Line 12 Liquidity Ratios
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Unformatted text preview: measure your ability to pay off obligations. The answer should always be yes for a noprofit and should be close to the number of assets you have. This is where current ratio comes from, which is 1:1. Current ratio says that for every $1 in liabilities, you should have an offsetting $ in assets. Liquidity basically refers to how quickly the assets can be turned into cash. Lines (45-53) current assets Line 60-63 current liabilities Quick Ratio or acid test subtracts the inventories from current assets b/c they are not easily convertible to cash. (Line 45-53)-Line 52 current assets-inventories Line 60-63 current liabilities Days Cash Ratio looks at the cash on hand and determines how long the nonprofit can survive if cash flow is stopped. Banks look at this number to see if its less than a yr. Current assets-liabilities = x X ___ = 365...
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This note was uploaded on 08/29/2011 for the course PUBLIC ADM 101 taught by Professor Staff during the Spring '11 term at UNF.

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