Analyzing Financial Statements
December 16, 2012
Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, fund-raising and expense ratio, and revenue and expense ratio for the years 2003 and 2004.
Long Term Solvency Ratio: 1.38
Programs and expense ratio: .72
General/ management/expense ratio: .28
Revenue and Expense ratio:
Include the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management and expense ratio, fund-raising and expense ratio, and revenue and expense ratio calculated in the Week Four Assignment.
Current Ratio: .75
Long Term Solvency Ratio: 1.26
Contribution Ratio: .53
Programs and expense ratio: 1.00
General/ management/expense ratio: .30
Revenue and Expense ratio: .98
Provide a 200- to 300-word explanation of the importance of each ratio for all three years listed in Appendix D. Include a statement of whether the organization’s financial picture has improved or not within the 3-year period specified in Appendix D.
The current ratio is something that is used to find out the current liquidity of nonprofit human services organizations. The long-term solvency ratio is just what it means, to determine what the long range of financial solvency of the organization. As well as a lay out of they plan to pay the yearly expenses. The contribution ratio is used to assess the dependency of an organization on its major revenue source....
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