Analyzing Financial Statements

2034 words 9 pages
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HSM 260

Analyzing Financial Statements

By Darrell L. Lee

Axia College of University of Phoenix

October 31, 2012

Instructor: Danette Brown

Calculate the following: Current ratio< Long-term solvency ratio, contribution ratio, programs/expense ratio, general and management/expense ratio, and revenue/ expense ratio for the years 2003 and 2004.

Current ratio = current Assets

Current Liabilities

2003

Current Ratio = [pic]

Current Ratio = 0.87

2004

Current Ratio = Current Assets

Current liabilities

Current Ratio = [pic]

Current Ratio = 0.90 (rounded –up) …show more content…

320,525.52

$171,622.77 + $320,525.52 = $ [pic] = $264.074

Fixed Cost 2003 2004

Rent and Utilities $150,000.00 $150,000.00

Telephone $24,000.00 $24,000.00

$174,000*2 = $348,000.00 = [pic] = $261,000.00

Break-even Point

Customers: 2003 2004

6,821 11,822

6,821 + 11,822=18,643

[pic] = 9,322

PX = A + BX

9322 X = 174,000 + 246,074 X

9322 X = 174,000 + 22,939,018.28

X = 22,940,758.28

Include the fixed cost, variable cost, and break-even point for the XYZ Corporation for the year 2002 from the week Six Checkpoint Average Variable Cost per Unit: $1,011.00

2002 8 ** ** $417,004 + $ 125,101.20 +$117,903 + $ 351,000

1, 142, 683

2003 1 ** **$520,069 + $ 171,622.70 +$79,888 + $371.101

1,798,113

2004 1 ** **$915,789.50 +$320,525.52 +$115,999 +$445,819

$3, 951, 82

Total 0

Number of years 3

$ 1, 317, 27

Average VC 3

Average Customers 8,202

Average VC per Unit $ 161

$174,000.00

Fixed Cost: 0 ** **150,000 + 24,000

Breakeven

Breakeven = Fixed cost / (Average Revenue per unit- Average VC Per unit)

Breakeven = $174,000 / ($187 - $ 161)

Breakeven = $174,000 / $26

Breakeven = 6,682 Customers

Discuss the purpose, advantages, disadvantages, and type of feedback provided by a line item, performance, and program budget in a

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