Presented below are financial statements (except cash flows) for two not-for-profit organizations. a. Calculate the following ratios:
Question:
Presented below are financial statements (except cash flows) for two not-for-profit organizations.
a. Calculate the following ratios:
∙ Program expense.
∙ Fund-raising efficiency.
∙ Days cash on hand.
∙ Working capital (expressed in days).
b. For each ratio, explain which of the two organizations has the stronger ratio.
Transcribed Image Text:
Statement of Activities ABC Not-for-Profit XYZ Not-for-Profit Donor- Donor- Unrestricted Restricted Unrestricted Restricted Revenues Program service revenue Contribution revenues Grant revenue $5,595,000 3,327,500 $2.250,000 3.200,000 $ 750,000 96,000 $1,025,000 Net gains on endowment Investments 17,500 Net assets released from restriction Satisfaction of program restrictions 450,000 (450,000) 396,000 377,000 (377,000) Total revenues 9,390,000 5,827,000 648,000 Expenses Education program expenses Research program expense 1,559,000 2,256.000 5,621,000 1,256,000 Total program service 3,815,000 expenses 6,877,000 456,000 356,000 Fund-raising Administration 650,000 1,229.000 Total supporting service expenses 1,585,000 Total expenses Increase in net assets Net assets January 1 1,106,000 7,983,000 1,407,000 4,208,000 5,400,000 427,000 1,037,500 548.000 396,000 759,000 320,000 $1,155,000 $1,464,500 $ 968,000 Net assets December 31 $5,615,000
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a Program Expense Ratio Total program service expenses Total revenues x 100 For XYZ NotforProfit Program Expense Ratio 5621000 9390000 x 100 5985 For ...View the full answer
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Essentials Of Accounting For Governmental And Not-for-Profit Organizations
ISBN: 9781260570175
14th Edition
Authors: Paul Copley
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