5063- Financial Ratios
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AMERICAN REDCROSS FINANCIAL RATIOS
Trine University
5063
Dr. Rob Shah
April 6, 2023
Complete at least 4 various ratios to help prove the financial
stability of the organization. (in Thousands)
The American Redcross has $1,117,969 in Current assets and
$494,351 in
current liabilities. This essentially means that they have a current ratio of 2.2614.
This is a good indicator because a current ratio of 2:1 or higher usually means the
nonprofit has enough assets to cover its short-term obligations.
The nonprofit also has a debt of $657,614k and total assets of $ 3,668,500
this means that the nonprofit has a debt-to-asset ratio of 17%. For a nonprofit
like the American Redcross, this seems reasonable because it is indicating that
the organization is not relying on debt in order to run its day-to-day operations.
Next, we can generate the fundraising efficiency ratio from the total
fundraising expense. We derive this from the amount received in contributions of
$2,953,488 by the amount that the organization spent on fundraising of
$324,325. This means that with a funding ratio of 17.85, they receive $17.85 for
each dollar they spend on funding.
2
The final ratio would be the Savings Indicator Ratio which measures the
ability of the organization to add to its net asset. The American Red Cross has
$3,130,644 in revenue and $2,836,486 which means that they have a 0.104
saving indicator ratio. In a nonprofit, this means that they can save more money
from their operations
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Calculate Select Ratios - Excel
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1 Condensed financial statements for Games Galore are summarized below:
2
3 Balance Sheet
2016
2015
185,000 $
80,000
4 Cash
$
143,000
59,000
134,000
5 Accounts Receivable, Net
6 Inventory
104,000
7 Prepaid Insurance
11,900
5,880
Total Current Assets
380,900
341,880
9 Property and Equipment, Net
514,500
407,000
10
Total Assets
$
895,400 $
748,880
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12 Current Liabilities
2$
85,300 $
96,800
13 Long-term Liabilities
284,000
224,000
Total Liabilities
369,300
299,000
320,800
299,000
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15 Contributed Capital
16 Retained Earnings
Total Stockholders' Equity
227,100
129,080
428,080
17
526,100
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Total Liabilities and Stockholders' Equity
$
895,400 $
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20 Income Statement
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Req 1B
Bahama Bay
Req 2A
Complete this question by entering your answers in the tabs below.
Req 2B
Bahama Bay
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