Hsm 260: Analyzing Financial Statements

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Analyzing Financial Statements HSM 260 6/9/2013 2002 | 2003 | 2004 Current Ratio: 104,296/139,017= .75 | 82,058/93,975= .87 | 302,902/337,033= .90 Long-Term Solvency Ratio 391,270/310,246= 1.26 | 359,863/259,979= 1.38 | 699,004/338,937= 2.06 Contribution Ratio: 617,169/1,165,065= .53 | 632,889/1,244,261= .51 | 1,078,837/2,191,243= .49 Programs and Expense Ratio: 834,008.20/1,185,008= .70 | 945,579.77/1,316,681= .72 | 1,526,311/1,972,131= .77 General and Management Expense Ratio: 351,000/1,185,008= .30 | 371,101/1,316,681= .28 | 445,819/1,972,131= .23 Revenue and Expenses Ratio: 1,165,065/1,185,008= .98 | 1,244,261/1,316,681= .94 | 2,191,243/1,972,131= 1.11 Importance of Ratios The current ratio is important to calculate…show more content…
This method can be used for an entire agency or for individual programs. “The major purpose of line-item budgeting systems is financial control. The line-item budget is an administrative tool to control spending.” (Martin, 2001). Spending is controlled by using the revenues and expenses for the fiscal year. The top of the line item budget will list all expected revenues or funds coming in. At the bottom of the budget all of the expected expenses or outgoing funds will be listed. There is one major advantage to a line item budget, simplicity. Simplicity is also a disadvantage of line item budgets because it gives no information other than incoming and outgoing funds. Although this system is very easy for most people to understand it fails to give information on amount of services, cost of…show more content…
There are many options available for special events the organization can throw such as dinners, auctions, walk-a-thons, concerts, and family fun day. When using this method it is important to get local businesses or residents to donate the items needed for the event. This makes it so the organization is not spending too much money in order to make money. Each event will have a fee or donation in order to attend. For example, when throwing a concert in the park the entrance fee could be $20 per person. Then individuals who attend can also use these as tax deductions for donating. I think throwing a special event is a great option for XYZ because it gets the community involved in a fun way while raising funds for the

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