Reference no: EM133809041
Case: When you are finished with the Excel template, write a one-page assessment of the fiscal condition of CGWO, evaluating what each ratio (that you computed) tells you about the organization's fiscal health. Ensure your response covers the following details:
Typical financial indicators:
Liquidity ratio (current ratio - current assets / current liabilities).
Burden of debt ratio (total debt / total assets).
Adequacy of available resources ratio (net assets without donor restrictions / expenses).
Current fiscal performance (operating surplus or deficit / total revenues).
Financial indicators specific to not-for-profits:
Fund-raising ratio (fund-raising expense + administrative costs) / total contributions and grants revenue).
Program ratio (program expenses / (program expenses + fund-raising expenses + administrative costs).
Contribution and grants ratio (revenue from contributions and grants / total revenues).
Revenues from services ratio (revenue from program fees / total revenues).
To complete your Week 10 Assignment, enter the correct amounts for the correct accounts into the Excel template. Because these are summary transactions (that is, each transaction reflects the annual effect of a particular type of activity), all effective dates are presumed to be December 31, 2021. Although this simplification does not allow you to see all the details associated with the timing of individual transactions throughout the year, the resulting end-of-the-year trial balance and financial statements will be complete.
Important Notes:
• In the Excel template, you will notice that all fields requiring responses have a shaded highlight. They are also marked for students using assistive technology. Make sure you don't miss any fields!
• Restriction codes must be selected for all revenues, and program codes must be selected for all expenses.
• For your convenience, the CGWO ending trial balance and the ledger, program, and restriction code tables from the Week 9 Homework file have been added below. The values have not changed.
FINAL STEP: REVIEW FINANCIAL STATEMENTS AND COMPOSE SUMMARY:
Review and analyze the following statements:
1. Statement of Financial Position
2. Statement of Activities
3. Statement of Functional Expenses
4. Statement of Cash Flows
These statements are found in the last three tabs in the Excel template. The amounts in the financial statements will be automatically populated based on amounts you entered in Week 9 Homework and Week 10 Assignment. Below are some check figures from the financial statements; if your figures are not the same as these follow the recommendations for reviewing your responses.
o Cash as of December 31,2021 = $1,042,515.43
o 2021 Total Assets = $22,433,104.18
o Change in Net Assets without Donor Restrictions for 2021 = $1,303,561.25
o Change in Net Assets with Donor Restrictions for 2021 = ($155,213.75)
o Total functional expenses for Program 100 - Physical and Social Development = $3,039,569.64
o Total Management and General expenses (Program Code 500) = $1,420,659.83
o Net cash flows from operating activities = ($273,388.32)
If your figures do not agree with the check figures do the following:
1. Ensure all your journal entries are balanced.
2. Review all revenues and ensure you entered the correct restriction code.
3. Review the expenses and ensure you entered the correct program code.
4. Make sure all the amounts entered are consistent with the instructions. Get Help Now!
Once you have reviewed the financial statements against the check figures, correct any errors you may have identified. Remember, you will likely refer to these three financial statements, as well as the trial balance, when composing your summary. All information from General Ledger codes, Program Codes and Restriction Codes are located in the Chart of Accounts tab in Excel. There are 25 Transactions to input.