Balance Sheet For Nonprofit Corporation 2002

Balance Sheetxyz Nonprofit Corporationbalance Sheet2002 A2003 A200

Balance Sheet xyz Nonprofit Corporation balance Sheet 2002 (A) 2003 (A) 2004 (A) Assets Current assets Cash $2,576.00 $20,904.00 $86,971.00 Investments $12,000.00 $12,000.00 $12,000.00 Accounts Receivables, net $88,764.00 $47,884.00 $199,905.00 Prepaid expense $956.00 $1,270.00 $4,026.00 Total Current Assets $104,296.00 $82,058.00 $302,902.00 Property and equipment, net Land $192,300.00 $193,372.00 $193,372.00 Furniture and equipment $59,135.00 $61,053.00 $92,267.00 Leasehold improvements $35,539.00 $23,380.00 $110,463.00 Total property and equipment $286,974.00 $277,805.00 $396,102.00 Total Assets $391,270.00 $359,863.00 $699,004.00 Liabilities and Net Assets Liabilities Current liabilities Accounts payable $74,826.00 $39,951.00 $104,201.00 Accrued payroll and related liabilities $57,888.00 $45,954.00 $66,359.00 Note payable (current portion) $6,303.00 $8,070.00 $166,161.00 Capital lease obligation (current portion) $0.00 $0.00 $312.00 Total current liabilities $139,017.00 $93,975.00 $337,033.00 Note payable (long term) $0.00 $0.00 $1,904.00 Capital lease obligation (long term) $171,229.00 $166,004.00 $0.00 Total liabilities $310,246.00 $259,979.00 $338,937.00 Net Assets Unrestricted ($38,418.00) ($105,127.00) $27,202.00 Temporarily restricted $119,442.00 $205,011.00 $332,865.00 Total net assets $81,024.00 $99,884.00 $360,067.00 Total liabilities and net assets $391,270.00 $359,863.00 $699,004.00

Income Statement XYZ NONPROFIT CORPORATION INCOME STATEMENT 2002 (A) 2003 (A) 2004 (A)

Revenue Grant Income $617,169.00 $632,889.00 $1,078,837.00 Customer Fees $506,788.00 $579,824.00 $1,004,874.00 Other $39,567.00 $31,362.00 $107,370.00 Interest $1,541.00 $186.00 $162.00 Total Revenue $1,165,065.00 $1,244,261.00 $2,191,243.00 Expenses Program services Payroll and benefits $417,004.00 $520,069.00 $915,787.20 Supplies $125,101.20 $171,622.77 $320,525.52 Rent and Utilities $150,000.00 $150,000.00 $150,000.00 Telephone $24,000.00 $24,000.00 $24,000.00 Other $117,903.00 $79,888.00 $115,999.00 Management and other $351,000.00 $371,101.00 $445,819.00 Total Expenses $1,185,008.00 $1,316,681.00 $1,972,131.00 Excess revenues of expenses ($19,943.00) ($72,420.00) $219,112.00

Statement of Cash Flows XYZ NONPROFIT CORPORATION

2002 (A) 2003 (A) 2004 (A) Cash Flow from Operating Activities Excess revenues over expenses ($19,943.00) ($72,420.00) $219,112.00 Adjustments to reconcile cash provided (used) in operations Depreciation $21,311.00 $26,396.00 $36,452.00 Decrease (increase) in accounts receivable ($38,475.00) $132,160.00 ($110,950.00) Decrease (increase) in prepaid expenses $307.00 ($314.00) ($2,640.00) Increase (decrease) in accounts payable $41,755.00 ($34,875.00) $64,250.00 Increase (decrease) in accrued payroll and related expenses $5,976.00 ($11,934.00) $20,405.00 Decrease (increase) in other assets $0.00 $0.00 ($116.00) Net cash provided (used) in operations $10,931.00 $39,013.00 $226,513.00 Cash Flow from Investing Activities Acquisition of capital items ($248,787.00) ($17,227.00) ($154,649.00) Net cash used by investing activities ($248,787.00) ($17,227.00) ($154,649.00) Cash Flow from Financing Activities Net proceeds from refinancing of loan $180,000.00 $3,539.00 $0.00 Decrease in loans ($2,468.00) ($6,997.00) ($7,913.00) Capital lease obligations $0.00 $0.00 $2,243.00 Principle payments on capital lease obligation $0.00 $0.00 ($127.00) Net cash provided (used) in financing activities $177,532.00 ($3,458.00) ($5,797.00) Net increase (decrease) in cash ($60,324.00) $18,328.00 $66,067.00 Cash, beginning of year $62,900.00 $2,576.00 $20,904.00 Cash, end of year $2,576.00 $20,904.00 $86,971.00

Paper For Above instruction

The financial statements of non-profit organizations are vital tools that provide insight into their economic health, operational efficiency, and compliance with fiscal responsibilities. Among these, the balance sheet, income statement, and statement of cash flows are particularly significant in illustrating the organization’s assets, liabilities, revenues, expenses, and liquidity position over time. This paper examines the financial health of XYZ Nonprofit Corporation from 2002 to 2004 by analyzing these statements to understand the organization’s financial trajectory, operational efficiency, and management of cash flows.

The balance sheet of XYZ Nonprofit Corporation reveals notable changes over the three-year period. In 2002, total assets amounted to $391,270, which decreased to $359,863 in 2003 but then increased significantly to $699,004 in 2004. This fluctuation reflects strategic decisions and operational growth, especially evident in asset categories like property and equipment, which increased from $286,974 in 2002 to $396,102 in 2004. The rise in current assets, especially cash, from $2,576 in 2002 to $86,971 in 2004, indicates improved liquidity and operational cash management. These changes suggest that the organization expanded its asset base, possibly to accommodate increased program activities or infrastructure development.

Liabilities also display a shifting pattern. The current liabilities surged from $139,017 in 2002 to $337,033 in 2004, reflecting higher accounts payable and accrued expenses, which is common in growing organizations that may face lagging receivables or delayed payments. Notably, long-term liabilities increased from $171,229 in 2002 to $1,904 in 2004, primarily due to increased notes payable and capital lease obligations. The total liabilities saw a steep rise by 2004, which warrants scrutiny concerning the organization’s leverage and debt management strategies.

Conversely, net assets demonstrate a turnaround from a negative balance of ($38,418) in 2002, indicating a deficit or net liabilities, to positive net assets of $360,067 in 2004, reflecting improved financial stability and sustainability. The unrestricted net assets also swung from negative to positive, indicating that the organization’s operations have transitioned from a deficit to generating surplus funds, enabling it to reinvest in its mission.

The income statement further supports the positive financial trend. Total revenue increased from approximately $1.17 million in 2002 to over $2.19 million in 2004. The growth was driven by increased grant income and customer fees, signifying successful fundraising and program revenue strategies. The expenses, however, rose sharply during this period, from about $1.19 million to nearly $2 million. This escalation denotes the organization's scaling activities, including increased program services, management, and governance costs. Despite the rising expenses, the organization achieved an excess of revenues over expenses in 2004, with a surplus of $219,112, contrasting with deficits in prior years.

The statement of cash flows provides a detailed view of liquidity and cash management practices. In 2002, net cash used in operations was approximately $10,931, turning into an inflow of $39,013 in 2003 and then substantially increasing to $226,513 in 2004. This trend indicates improving operational cash flow efficiency. The cash flows from investing activities show significant capital investments, notably in acquiring property and equipment, which decreased slightly in the later years, indicating investment in infrastructure and capacity expansion. Financing activities reflect refinancing efforts, leading to cash inflows in 2002, but by 2004, net cash outflows suggest repayment or reduction of debt obligations.

Overall, the financial analysis depicts a nonprofit organization that faced initial challenges with deficits and liquidity issues but has demonstrated considerable growth and improved financial health by 2004. The strategic investments in property, equipment, and program expansion have been financed through a combination of grants, revenue generation, and debt management, culminating in a positive net asset position. The positive cash flows and increasing surplus indicate sustainable operations and potential for future growth, provided debt levels are monitored.

In conclusion, XYZ Nonprofit Corporation’s financial statements from 2002 to 2004 depict a story of strategic growth, effective resource management, and evolving financial stability. Their ability to increase assets and generate surpluses reflects a well-managed organization capable of supporting its mission and expanding its impact. Nonetheless, careful attention to liabilities and cash flow management remains essential to maintain long-term sustainability and operational excellence.

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