Illuminations Inc. consultants have prepared a list of financial ratios (numbers) for your analyses. The following table presents these ratios into four categories: a) liquidity, b) solvency, d) profitability, or d) efficiency. Use the following formula to perform the ratio calculations from 2014 to 2018 using Microsoft Excel.

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+ Ratio Classification Liquidity Ratio Current Ratio Ratio Formula Defensive Interval Liquid Funds Amount Liquid Funds Indicator Quick Ratio Solvency Ratio Debt to Asset Ratio Debt to Net Asset Ratio Times Interest Earned Ratio Profitability Ratio Return on Investment? Savings Indicator Efficiency Ratio Administration Expense Ratio Program Service Ratio =(Cash+Marketable SecuritiestReceivablestInventory) (Accounts PaxablestGiants Paxablest Deferred Revenues) =(Cash+Marketable SecuritiestReceivables) [(Expenses- Depreciation)/12] =Unrestricted Net Assets-Fixed AssettLong-Term Debt =[(Total Net Assets-Permanently Restricted Net Assets-Fixed Assets)*12]/Total Expenses =(Cash+Marketable Securities +Receivables) (Accounts Paxables+Grants Payables.+Deferred Revenues) =Total Liabilities/Total Assets =Total Liabilities/Total Unrestricted Net Assets =(Increases or Decreases in Net Assets+Interest Expenses) Interest Expenses =Investment Income/Average Investments =(Revenues-Expenses) Revenues =(Administration Expenses/Total Expenses) =Program Service Expenses/Total Expenses Ratio Description Ratio indicates whether the organization has sufficient current assets to meet its short-term obligations. Ratio indicates the number of months the organization could operate using cash, marketable securities, and receivables on hand at year-end. Ratio indicates the amount of unrestricted liquidity remaining after fixed assets and related debt are removed. Ratio indicates the number of months that an organization can operate based on net assets (reserves) that do not include fixed assets or endowments. Ratio indicates whether the organization has sufficient liquid current assets to meet its short- term obligations. It is a more stringent measure than the current ratio. Ratio indicates the extent to which the organization's assets are financed with debt Ratio indicates the percentage of unrestricted net assets that are being financed with debt. Ratio indicates whether the organization has sufficient net assets to pay the current year's interest expenses. Ratio indicates the gain or loss generated on an investment relative to the amount of money invested. Ratio is the income (loss) as a percentage of total revenue. Positive ratio indicates income and negative ratio indicates loss. Ratio indicates the percentage of total expenses that cover administrative expenses. Ratio indicates the percentage of total expenses that go directly into program services. + Ratio Classification Liquidity Ratio Current Ratio Ratio Formula Defensive Interval Liquid Funds Amount Liquid Funds Indicator Quick Ratio Solvency Ratio Debt to Asset Ratio Debt to Net Asset Ratio Times Interest Earned Ratio Profitability Ratio Return on Investment? Savings Indicator Efficiency Ratio Administration Expense Ratio Program Service Ratio =(Cash+Marketable SecuritiestReceivablestInventory) (Accounts PaxablestGiants Paxablest Deferred Revenues) =(Cash+Marketable SecuritiestReceivables) [(Expenses- Depreciation)/12] =Unrestricted Net Assets-Fixed AssettLong-Term Debt =[(Total Net Assets-Permanently Restricted Net Assets-Fixed Assets)*12]/Total Expenses =(Cash+Marketable Securities +Receivables) (Accounts Paxables+Grants Payables.+Deferred Revenues) =Total Liabilities/Total Assets =Total Liabilities/Total Unrestricted Net Assets =(Increases or Decreases in Net Assets+Interest Expenses) Interest Expenses =Investment Income/Average Investments =(Revenues-Expenses) Revenues =(Administration Expenses/Total Expenses) =Program Service Expenses/Total Expenses Ratio Description Ratio indicates whether the organization has sufficient current assets to meet its short-term obligations. Ratio indicates the number of months the organization could operate using cash, marketable securities, and receivables on hand at year-end. Ratio indicates the amount of unrestricted liquidity remaining after fixed assets and related debt are removed. Ratio indicates the number of months that an organization can operate based on net assets (reserves) that do not include fixed assets or endowments. Ratio indicates whether the organization has sufficient liquid current assets to meet its short- term obligations. It is a more stringent measure than the current ratio. Ratio indicates the extent to which the organization's assets are financed with debt Ratio indicates the percentage of unrestricted net assets that are being financed with debt. Ratio indicates whether the organization has sufficient net assets to pay the current year's interest expenses. Ratio indicates the gain or loss generated on an investment relative to the amount of money invested. Ratio is the income (loss) as a percentage of total revenue. Positive ratio indicates income and negative ratio indicates loss. Ratio indicates the percentage of total expenses that cover administrative expenses. Ratio indicates the percentage of total expenses that go directly into program services.