# Analyzing Financial Statements

2034 words 9 pages
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)

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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