This question refers to the financial statements for WNYC.

For items 1 through 3, select the appropriate ratio from the following list:

A. Debt-to-Equity Ratio = Total Debt

Total Net Assets

B. Quick Ratio = Cash + Marketable Securities + Receivables

Current Liabilities

C. Total Margin = Increase in Total Net Assets

Total Unrestricted Revenues and Support

D. Cash Flow Coverage = Cash from Operations + Interest Expense

Interest Expense + Debt Payments

E. Program Services Ratio = Program Services Expenses

Total Expenses

F. Receivables Turnover = Revenues and Support

Receivables

1.

a) Which ratio would you use to measure WNYCs liquidity?

b) Calculate this ratio for 2005.

c) Calculate this ratio for 2006.

d) Has the organizations liquidity improved, deteriorated, or stayed the same?

2.

a) Which ratio would you use to measure WNYCs profitability?

b) Calculate this ratio for 2005.

c) Calculate this ratio for 2006.

d) Has the organizations profitability improved, deteriorated, or stayed the same?

3.

a) Which ratio would you use to measure WNYCs leverage?

b) Calculate this ratio for 2005.

c) Calculate this ratio for 2006.

d) Has the organizations leverage improved, deteriorated, or stayed the same?