Montana Mentoring is a small nonprofit with no permanent endowment and no long-term debt. You know little about the nonprofit but you do have its financial statements. Conduct a financial analysis of this nonprofit using the financial statements provided below.

A. Complete the following ratios in Excel for FY 10: current, working capital, quick, debt-to-asset, debt-to-equity, asset-turnover, days-receivable, profit margin, return-on-assets, common size, and contributions. For each, write 1 sentence reporting the results and summarize what it means.

B. Write 2-3 paragraphs that explains the financial condition of the nonprofit organization, including any "red flags" that you identify.

TABLE 7.4 Statements of Financial Position, Montana Mentoring Nonprofit December 31, 2010 and 2009 2010 2009 Assets Cash and Cash Equivalents Marketable Securities Accounts Receivable Prepaid Expenses Total Current Assets Long-Term Assets Property and Equipment, at Cost Less Accumulated Depreciation Net Total Long-Term Assets Total Assets $154,000 500,000 44,000 1,000 $699,000 $100,000 400,000 13,000 500 $513,500 50,000 (36,000) 14,000 44,000 (27,000) 17,000 $530,500 $713,000 Liabilities Accounts Payable Unearned Income 91,000 6,000 51,000 12,500 97,000 63,500 Total Current Liabilities No Long-Term Liabilities Net Assets Unrestricted Temporarily Restricted Permanently Restricted 476,000 140,000 392,000 75,000 Total Net Assets Total Liabilities and Net Assets 616,000 $713,000 467,000 $530,500 TABLE 7.5 Statements of Activities, Montana Mentoring Nonprofit, FY 2010 2010 Temporarily Restricted Revenues Unrestricted Total $478,000 Grants Contributions Fees In-Kind Donations Special Events Interest Net Assets Transferred Total Revenues $58,300 44,700 19,600 68,300 26,800 24,700 413,000 655,400 $536,300 44,700 19,600 68,300 26,800 24,700 (413,000) 65,000 720,400 Expenses Salaries Fringe Benefits Fund Development 185,200 61,400 4,300 185,200 61,400 4,300