Question: The data that follow pertaining to two not for pro t hospices were

The data that follow pertaining to two not-for-profit hospices were taken from GuideStar, an online database ( that provides information about not-for-profit organizations. Names and dates have been changed. The forms 990 that are included on the web-site indicate that Pleasant Valley and Ancient Falls had fund-raising expenses of $38,327 and $11,075, respectively.
Because the data were taken from an Internal Revenue Service form, the statements are not in the format required by GAAP (e.g., they do not report net assets by degree of restrictiveness).

1. Which of the two is the more likely to be able to satisfy its current liabilities as measured by the quick ratio? Include only cash and receivables.
2. Which has the greater financial resources as measured by the ratio of total expenses to net assets (excluding property, plant, and equipment)?
3. Which spends the greater percentage of its revenues on fund-raising?
4. Which directs a greater portion of its revenues to program services?
5. Based on this limited amount of information, which of the two, in your opinion, is the more fiscallysound?

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  • CreatedAugust 13, 2014
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