1. Calculate the following six financial ratios:
2. Use the information from the income and balance sheet provided!

Table 1.0 Primary Reserve Ratio

Numerator- Expendable net assets	2016	2017
+ unrestricted net assets
+ temporary restricted assets
Property, Plant and equipment, net	(699,918)	(704,653)
+ Long term Debt
Numerator- Expendable net assets
Denominator- Total expenses	569,959	565,857
Value of ratio

Table 2.0 Net Operating revenue Ratio

	2016	2017
Numerator- Excess (deficiency) of unrestricted operating income over unrestricted operating expenses
Denominator- Total unrestricted operating revenue
+ Total unrestricted revenue and gains
+ Net assets released from restrictions
Denominator- Total unrestricted operating revenue
Value of ratio

Table 3.0 Return on Net Assets Ratio

	2016	2017
Numerator- Change in net assets
Denominator- Total net assets (beginning of year)	758,255	791,171
Value of ratio

Table 4.0 Viability Ratio

	2016	2017
Numerator- Expendable net assets
Denominator- Plant-related debt
Value of ratio

Table 5.0 Secondary reserve ratio

	2016	2017
Numerator- non-expendable net assets
Denominator- total expenses	569,959	565,857
Value of ratio

Table 6.0 Debt coverage ratio

	2016	2017
Numerator- adjusted change in net assets (adjusted change in net assets = change in unrestricted net assets + depreciation expense + interest expense)
Denominator- Debt service (Debt service= Principal payment + interest expense)
Value of ratio

CONSOLIDATED AND UNIVERSITY STATEMENTS OF COMPREHENSIVE INCOME AND EXPENDITURE

for the year ended 31 July 2017

University Statement of Comprehensive					Before
Income and Expenditure					exceptional			Exceptional
			2017		items			items	2016
			£000	£000		£000			£000
Income
Tuition fees and education contracts			174,676	158,432		-			158,432
Funding body grants			160,362	158,693		-			158,693
Research grants and contracts			179,803	175,172		2,618			177,790
Other income			82,286	76,142		-			76,142
Investment income			9,182	8,061		-			8,061
New endowment income			1,165		1,524			-			1,524
Total income			607,474	578,024		2,618			580,642
Expenditure
Staff costs			321,008	293,062		-			293,062
Other operating expenses			207,790	221,246		21,903			243,149
Depreciation			32,886	30,721		-			30,721
Interest and other finance costs			4,173		3,027			-			3,027
Total expenditure			565,857		548,056			21,903			569,959
Surplus/(deficit) before other gains			41,617	29,968		(19,285)			10,683
Gain on disposal of non-current assets			2,150	855		-			855
Gain on investments			12,950		4,110			-			4,110
Surplus before tax			56,717	34,933		(19,285)			15,648
Corporation taxation			77		-			(547)			(547)
Surplus after tax