1. Does the management of HRCC revenues reflect its mission statement? Explain! 

2. Do the financial statements of HRCC provide indicators of organizational growth? Explain! 

3. How much flexibility does the management have to make financial decisions? Explain! 

4. Do you think the foundation has the ability to pay its bills on time? Explain! 

5. Do you think that HRCC has become more solvent or less solvent? Explain! 

6. What factors account for the increase or decrease in HRCC solvency? 

7. What can you say about the efficiency and effectiveness of HRCC? 

8. How well is HRCC doing compared to other nonprofit organizations of its size? 

9. Do you think that HRCC is on a path for financial sustainability? Explain! 

10. What would be your financial management recommendations to the HRCC board for the next fiscal year?

 

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Copyright 2014. Springer Publishing Company, Incorporated. All rights reserved. CASE STUDY: HARRY AND ROY COMMUNITY CENTER The Harry and Roy Community Center (HRCC) is based in Appleton, Wisconsin. The mission of HRCC is to provide educational, recreational, and career develop- ment programs and services that assist low-income individuals in Appleton to become economically self-sufficient and more responsible citizens. Prior to the annual board of directors meeting, the following financial statements (balance sheet and income statement) were distributed to all members. The standard ratios for other nonprofit organizations the size of HRCC are the following: Current ratio: 2.1 Quick ratio: 1.4 Working capital: $70,000 Return on assets: 30% Fund mix ratio: 50% Program emphasis ratio: 70% Questions You are a member of an ad hoc committee that must answer the following questions, using the information from the balance sheet and income statement, which follow: 1. Does the management of HRCC revenues reflect its mission statement? Explain! 2. Do the financial statements of HRCC provide indicators of organizational growth? Explain! 3. How much flexibility does the management have to make financial decisions? Explain! 4. Do you think the foundation has the ability to pay its bills on time? Explain! 5. Do you think that HRCC has become more solvent or less solvent? Explain! 6. What factors account for the increase or decrease in HRCC solvency? What can you say about the efficiency and effectiveness of HRCC? 7. 8. How well is HRCC doing compared to other nonprofit organizations of its size? 9. Do you think that HRCC is on a path for financial sustainability? Explain! 10. What would be your financial management recommendations to the HRCC board for the next fiscal year? Balance sheet Assets Current assets Cash Account receivable Grants receivable Inventory HRCC Balance Sheet 2011 $ 95,000.00 $ 50,000.00 $ 150,000.00 $ 350,000.00 2010 $ 85,000.00 $ 80,000.00 $100,000.00 $325,000.00 (continued) Copyright 2014. Springer Publishing Company, Incorporated. All rights reserved. CASE STUDY: HARRY AND ROY COMMUNITY CENTER The Harry and Roy Community Center (HRCC) is based in Appleton, Wisconsin. The mission of HRCC is to provide educational, recreational, and career develop- ment programs and services that assist low-income individuals in Appleton to become economically self-sufficient and more responsible citizens. Prior to the annual board of directors meeting, the following financial statements (balance sheet and income statement) were distributed to all members. The standard ratios for other nonprofit organizations the size of HRCC are the following: Current ratio: 2.1 Quick ratio: 1.4 Working capital: $70,000 Return on assets: 30% Fund mix ratio: 50% Program emphasis ratio: 70% Questions You are a member of an ad hoc committee that must answer the following questions, using the information from the balance sheet and income statement, which follow: 1. Does the management of HRCC revenues reflect its mission statement? Explain! 2. Do the financial statements of HRCC provide indicators of organizational growth? Explain! 3. How much flexibility does the management have to make financial decisions? Explain! 4. Do you think the foundation has the ability to pay its bills on time? Explain! 5. Do you think that HRCC has become more solvent or less solvent? Explain! 6. What factors account for the increase or decrease in HRCC solvency? What can you say about the efficiency and effectiveness of HRCC? 7. 8. How well is HRCC doing compared to other nonprofit organizations of its size? 9. Do you think that HRCC is on a path for financial sustainability? Explain! 10. What would be your financial management recommendations to the HRCC board for the next fiscal year? Balance sheet Assets Current assets Cash Account receivable Grants receivable Inventory HRCC Balance Sheet 2011 $ 95,000.00 $ 50,000.00 $ 150,000.00 $ 350,000.00 2010 $ 85,000.00 $ 80,000.00 $100,000.00 $325,000.00 (continued)

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1 Does the management of HRCC revenues reflect its mission statement The answer to this question would require an examination of both HRCCs mission statement and its revenue management practices If th... View the full answer