Review the financial statements for XYZ Corporation in Appendix D.
• Calculate the following: Current ratio, long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, fund-raising/expense ratio, and revenue/expense ratio for the years 2002, 2003 and 2004.
• Provide a 200- to 300-word explanation of the importance of each ratio for all three years listed in Appendix D. Include a statement on whether or not the organization’s financial picture has improved within the three-year period specified in Appendix D.
• Calculate the fixed costs, variable costs, and break-even point for the XYZ Corporation listed in Appendix D for 2002, 2003, 2004.
• Discuss the purpose, advantages, disadvantages, and type of feedback provided by a line item, performance, and program budget in a 350- to 700-word essay.
• Provide a 350- to 700-word response to the following: Identify and describe two types of traditional approaches to fund development, and two types of nontraditional approaches to fund development that would be appropriate for the XYZ Corporation, and provide a conclusion of the organization’s current and future financial picture. Format all written portions according to APA guidelines.
• Compile all elements and submit them as attachments to the same post.
XYZ NON PROFIT Organization
INCOME STATEMENT 2002 (A) 2003 (A) 2004 (A) Revenue Grant Income $617,169.00 $632,889.00 $1,078,837.00 Customer Fees $506,788.00 $579,824.00 $1,004,874.00 Other $39,567.00 $31,362.00 $107,370.00 Interest $1,541.00 $186.00 $162.00 Total Revenue $1,165,065.00 $1,244,261.00 $2,191,243.00 Expenses Program services Payroll and benefits $417,004.00 $520,069.00 $915,787.20 Supplies $125,101.20 $171,622.77 $320,525.52 Rent and Utilities $150,000.00 $150,000.00 $150,000.00 Telephone $24,000.00 $24,000.00 $24,000.00 Other $117,903.00 $79,888.00 $115,999.00 Management and other $351,000.00 $371,101.00 $445,819.00 Total Expenses $1,185,008.00 $1,316,681.00 $1,972,131.00 Excess revenues of expenses ($19,943.00) ($72,420.00) $219,112.00 Customer Count 5962 6821 11822 BALANCE SHEET 2002 (A) 2003 (A) 2004 (A) ASSETS Current assets Cash $2,576.00 $20,904.00 $86,971.00 Investments $12,000.00 $12,000.00 $12,000.00 Accounts Receivables, net $88,764.00 $47,884.00 $199,905.00 Prepaid expense $956.00 $1,270.00 $4,026.00 Total Current Assets $104,296.00 $82,058.00 $302,902.00 Property and equipment, net Land $192,300.00 $193,372.00 $193,372.00 Furniture and equipment $59,135.00 $61,053.00 $92,267.00 Leasehold improvements $35,539.00 $23,380.00 $110,463.00 Total property and equipment $286,974.00 $277,805.00 $396,102.00 TOTAL ASSETS $391,270.00 $359,863.00 $699,004.00 LIABILITIES AND NET ASSETS LIABILITIES Current liabilities Accounts payable $74,826.00 $39,951.00 $104,201.00 Accrued payroll and related liabilities $57,888.00 $45,954.00 $66,359.00 Note payable (current portion) $6,303.00 $8,070.00 $166,161.00 Capital lease obligation (current portion) $0.00 $0.00 $312.00 Total current liabilities $139,017.00 $93,975.00 $337,033.00 Note payable (long term) $0.00 $0.00 $1,904.00 Capital lease obligation (long term) $171,229.00 $166,004.00 $0.00 Total liabilities $310,246.00 $259,979.00 $338,937.00 NET ASSETS Unrestricted ($38,418.00) ($105,127.00) $27,202.00 Temporarily restricted $119,442.00 $205,011.00 $332,865.00 Total net assets $81,024.00 $99,884.00 $360,067.00 TOTAL LIABILITIES AND NET ASSETS $391,270.00 $359,863.00 $699,004.00 XYZ NONPROFIT CORPORATION STATEMENT OF CASH FLOW 2002 (A) 2003 (A) 2004 (A) CASH FLOW FROM OPERATING ACTIVITIES Excess revenues over expenses ($19,943.00) ($72,420.00) $219,112.00 Adjustments to reconcile cash provided (used) in operations Depreciation $21,311.00 $26,396.00 $36,452.00 Decrease (increase) in accounts receivable ($38,475.00) $132,160.00 ($110,950.00) Decrease (increase) in prepaid expenses $307.00 ($314.00) ($2,640.00) Increase (decrease) in accounts payable $41,755.00 ($34,875.00) $64,250.00 Increase (decrease) in accrued payroll and related expenses $5,976.00 ($11,934.00) $20,405.00 Decrease (increase) in other assets $0.00 $0.00 ($116.00) Net cash provided (used) in operations $10,931.00 $39,013.00 $226,513.00 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of capital items ($248,787.00) ($17,227.00) ($154,649.00) Net cash used by investing activities ($248,787.00) ($17,227.00) ($154,649.00) CASH FLOW FROM FINANCING ACTIVITIES Net proceeds from refinancing of loan $180,000.00 $3,539.00 $0.00 Decrease in loans ($2,468.00) ($6,997.00) ($7,913.00) Capital lease obligations $0.00 $0.00 $2,243.00 Principle payments on capital lease obligation $0.00 $0.00 ($127.00) Net cash provided (used) in financing activities $177,532.00 ($3,458.00) ($5,797.00) Net increase (decrease) in cash ($60,324.00) $18,328.00 $66,067.00 Cash, beginning of year $62,900.00 $2,576.00 $20,904.00 Cash, end of year $2,576.00 $20,904.00 $86,971.00
