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I need to know the answer to question 1- how to identify each organizaiton? HARVARD UNIVERSITY EXTENSION SCHOOL MGMT E-1300: FUNDAMENTALS OF ACCOUNTING AND FINANCE

I need to know the answer to question 1- how to identify each organizaiton?

image text in transcribed HARVARD UNIVERSITY EXTENSION SCHOOL MGMT E-1300: FUNDAMENTALS OF ACCOUNTING AND FINANCE FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS CASE ANALYSIS #1: NEW ENGLAND TRUST 1). 2). PREPARE A 1-PAGE EXECUTIVE SUMMARY THAT ADDRESSES QUESTION #1 IN THIS CASE. (a) Using the narrative information from the case and the financial information in Exhibit 1, identify each organization from Exhibit 1. (b) Please justify each answer provided. NO ASSIGNMENT LONGER THAN 1-PAGE IN LENGTH WILL BE ACCEPTED. THE FOLLOWING IS A SUMMARY OF THE USE OF RATIOS IN THE CASE: Financial analysis/Use of ratios: -Evaluating a firm's financial performance -Analyzing ratios or numerical calculations -Comparing a company to its industry Which ratio is the most important - it all depends upon your perspective: Suppliers and banks (lenders) are most interested in liquidity ratios. Stockholders are most interested in profitability ratios. A long-run trend analysis over a 5-10 year period is usually performed by an analyst. Profitability Ratios: Show how profitable a company is. -Profit Margin Net Income/Sales -Return on Assets Net Income/Total Assets -Return on Equity Net Income/Total Equity [Fund Balance] Asset Utilization Ratios: Show how effectively a company uses its assets. -Receivable Turnover Sales (Credit)/Receivables -Average Collection Period Accounts Receivable/Average Daily Credit Sales -Inventory Turnover Sales/Inventory -Fixed Asset Turnover Sales/Fixed Assets -Total Asset Turnover Sales/Total Assets Liquidity Ratios: Show how liquid a company is or how much funding it has available to meet short-term financial needs. -Current Ratio Current Assets/Current Liabilities -Quick Ratio (Current Assets - Inventory)/Current Liabilities Debt Utilization Ratios: Show how well a company is managing or using debt. -Debt Ratio Total Debt/Total Assets -Debt/Equity Ratio Total Debt/Total Equity [Fund Balance] DUE DATE: MONDAY 9/28/2015

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