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New York Yankees

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14-7. a. | Ratios Based on the 2010 Form 990 | | | | | | | | Measure | | Calculation (amounts in 000s) | | Ratio | | | | | | | | Current ratio | | $4+$6,350+$798+$40+$116,932+$529 | | 13.86 | | (part X, col. B, lines 1-9, 17 & 18) | | $5,357+$3,637 | | | | | | | | | | Revenues/expenses | | $795,079 | | 0.93 | | (part VIII, line 12 & part IX, line 25) | | $854,605 | | | | | | | | | | Program expenses/total expenses | | $844,468 | | 0.99 | | (part IX, line 25) | | $854,605 | | | | | | | | | | Fund-raising expenses/public support | | $6,702 | | 0.01 | | (part IX, line 25, & part VIII, line 1h) | | $794,564 | | |

The current ratio indicates that AmeriCares is highly liquid, covering its current liabilities almost 14 times. While its expenses are slightly greater than revenues, in the short-term the inability to cover expenses with Ch. 14, Solutions, 14-7 (Cont’d)

revenues would not be a concern. A ratio equal to or greater than one would be desirable. A review of the statement of financial position indicates sufficient unrestricted net assets to cover the short-fall in the current period. However, the large decline in unrestricted net assets from 2009 to 2010 indicates this is an area that should be monitored. AmeriCares appears to be highly effective with 99 percent of expenses related to programs and only 1 percent related to support. Fund-raising efficiency also appears to be good, in that AmeriCares is spending about $.01 in fund-raising for every dollar of public support received.

b. | Ratios Based on the 2010 Audited Financial Statements | | | | | | | | Measure | | Calculation (amounts in 000s) | | Ratio | | | | | | | | Current ratio | | $153,320 | | 16.93 | | | | $9,054 | | | | | | | | | |

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