Question
You have recently become involved with a non profit organization, PUPPYPLAY, that has been working to promote a new dog park in your community. Last
You have recently become involved with a non profit organization, PUPPYPLAY, that has been working to promote a new dog park in your community. Last year it succeeded in convincing City Council to dedicate a small dog park to off-lease use, and its gearing up to reorient its activities to include support for this new dog park. Its volunteer board has gotten two grants to support a survey of user preferences, a volunteer recruitment program, and beautification programs in the park. Annually, its holds the Fido Festival, a festival for dog lovers in an effort to raise money for the awareness of dogs. Analyze its most recent statement of activities to answer the following questions in considering its financial position and mission achievement.
Year End Activities Excel Pasted Below and Picture attached.
Calculate the 2016 operating and total margin ratios for PUPPYPLAY, show your work.
Calculate the program services ratio and report it to two decimal places
What does the program services ratio tell you about PUPPYPLAYs operations?
As the organization reorients itself, it needs to decide whether to continue the Fido Festival.
A: How profitable is the Fido Festival? Develop a ratio analysis measure that supports your analysis of the relative size of the profit or loss, calculate it, showing your work and interpret the measure in answering the question.
B: What factors should leadership consider in deciding whether to continue the Fido Festival?
Interpret these ratios:
A: What does the operating margin tell us about PUPPYPLAYs financial activities?
B: What does the total margin ratio tell us?
C: Why are PUPPYPLAYs margins so high, and how might this relate to its shift in mission?
PUPPYPLAY INC Statement of Activities Year Ending 2016 | ||
2016 | ||
Change in unrestricted Net Assets | ||
Support and Revenue | ||
Revenue from Fido Festival event | $24,678 | |
Neighborhood council grant | $25,000 | |
Direct Contributions | $73,000 | |
Total Support and Revenue | $122,678 | |
Total Net Assets Released from Restriction | ||
Satisfaction of program restrictions | $10,000 | |
Total Unrestricted Revenues and Other Support | $132,678 | |
Expenses | ||
Contract Administrative support | $23,456 | |
Fido Festival expenses | $32,000 | |
Advocacy flyers | $10,000 | |
Dog Park Survey | $10,000 | |
Total Expenses | $75,456 | |
Changes in Temporarily Restricted Net Assets | ||
Foundation Grant | $50,000 | |
Assets released from restrictions | ($10,000) | |
Increase in temporarily restricted net assets | $40,000 | |
Increase in unrestricted net assets | $57,222 | |
Increase in net assets | $97,222 | |
Net Assets-beginning of the year | $12,000 | |
Net Assets-End of the year | $109,222 | |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started