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Analyzing Financial Statements

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Submitted By ScorpionBeauty
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Analyzing Financial Statements
Holly Regan
HSM/260
May 16, 2014
Greg O'Donnell

Analyzing Financial Statements

COMPARATIVE RATIO | 2002 (A) | 2003 (A) | 2004 (A) | Current=Current Assets/Current Liabilities | 104,296/139,017 RATIO= .75 | 82,058/93,975RATIO= .87 | 302,902/337,033RATIO= .90 | Long-Term Solvency=Total Assets/Total Liabilities | 391,270/310,246 RATIO= 1.26 | 359,863/259,979 RATIO= 1.38 | 699,004/338,937 RATIO= 2.06 | Contribution=Largest Revenue Source/Total Revenue | 617,169/1,165,065RATIO= .53 | 632,889/1,244,261 RATIO= .51 | 1,078,837/2,191,243 RATIO= .49 | Program/Expense =Total Program/Total Expenses | 684,008/1,185,008 RATIO= .58 | 945,579/1,316,681 RATIO= .72 | 1,526,311/1,972,131 RATIO= .77 | General and Management Expense = Total General and Management Expenses/ Total Expenses | 351,000/1,185,008 RATIO= .30 | 371,101/1,316,681 RATIO= .28 | 445,819/1,972,131 RATIO= .23 | Revenue/Expense= Total Revenues/Total Expenses | 1,165,065/1,185,008RATIO= .98 | 1,244,261/1,316,681 RATIO= .94 | 2,191,243/1,972,131 RATIO= 1.11 |

After reviewing the XYZ Corporation’s financial statements of the last three fiscal years there is evidence that the organizations finances have improvement significantly in three ratio areas where the remaining ratios were fine. First problem area is the programs ratio as it had started off with violating the standard ratio with .58 percent where .60 percent is the minimum standard. The last two fiscal years were in good standing. The second problem area is the general and management ratio as it had started off a bit too high, but has consistently managed to lower the ratio over time. The third problem area is the revenue expense ratio where in year two they had more expenses than income, but in year three they received a large donation to…...

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