Analyzing Financial Statements

Analyzing Financial Statements

Rebecca Hunter

HSM/260

January, 29, 2012

Jan Bridgeford-Smith

Analyzing Financial Statements

Ratios | 2002 | 2003 | 2004 |

Current ratio |  104,296/139,017=0.75 |  82,058/93,975=0.87 | 302,902/337,033=0.89 |

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=0.5 |  632,889/1244261=0.51 |  1,078,837/2,191,243=0.49 |

Program/Expense ratio |   834008.20/ 1,185,008=0.58 |  795,579.77/1,316,681=0.60 | 1,376,311.72/1,972,131=0.70 |

General/Mgmt. ratio |  351,000/1,185,008=0.29 |  371,101/1,316,681=0.28 |  445,819/1,972,131=0.23 |

Revenue/Expense ratio |  1,165,065.00/1,185,008.00=0.98 |  1,244,261/1,316,681=0.94 |  2,191,243/1,972,131=1.11 |

Fixed cost | 150,000+24,000=174,000 | 150,000+24,000=174,000 | 150,000+24,000=174,000 |

Variable cost | 417,004+125,101.20+117,903+351,000=1,011,008.20 | 520,069+171,622.77+79,888+371,101=1,142,680.77 | 915,787.20+320,525.52+115,999+445,819=1,798,130.72 |

Break Even point | | | |

Using the RATIOS, write an evaluation of the organization’s financial picture over the 3-year period specified in Appendix D. Be sure to indicate which ratios support your conclusions.

The picture that I get from the ratios is that the company is that all the ratio’s go up over the years except the general management which went down, the revenue expense ratio going up is good it means that the company has more coming in then going out.

Essay # 2 - Two years have passed since the Phoenix STS program faced the loss of funding for its East Valley operations. During the two years, Phoenix STS has attempted to broaden the funding base of the entire program, but with particular emphasis on the East Valley service area. The program manager has just received an end of the accompanying fiscal year financial report showing revenues and expenses for the three transportation service areas. The report shows that...