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Pages:
2 pages/≈550 words
Sources:
3
Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 9.72
Topic:
Financial Analysis
Essay Instructions:
Leaders must have a working knowledge of financial reports. This includes understanding the components of an income statement, balance sheet, and financial ratios.
In this assignment, you will analyze an annual financial report and submit a 2- to 3-page paper summarizing your findings.
Step 1
Review the assigned readings and presentations to develop an understanding of the components of an income statement, balance sheet, and financial ratios.
Locate an annual financial report (a 10K for a U.S. public company) to analyze. The report might come from one of the following:
Publicly traded company (e.g., Pearson Annual Report)
Charter school company (Please use this option. Achievement First Charter School)
Nonprofit organization
School district
Step 2
Identify the entity's name and source (URL) for the annual report.
Consider the following for the annual report you chose:
The Income Statement
What are the major sources of income for the organization?
What is the breakdown of each source of revenue as a percentage of total income?
What are the costs?
The Balance Sheet
How much does the organization have in cash and short-term investments?
Look at the cash against current liabilities. What are the current liabilities? Does the organization have enough cash to pay off its short-term debt (current liabilities)?
What is the organization’s working capital?
What is the organization’s current ratio? What does this mean?
What is the organization’s debt-to-equity ratio? What does this mean?
Step 3
Compose your findings in a 2- to 3-page evidence-based summary. Use APA-formatted in-text citations to support your points.
Essay Sample Content Preview:
Title
Your name
Subject and Section
Professor’s name
Date
Annual Report for Achievement First Brooklyn Charter Schools (2022-2023)
Income Statement Analysis
Major Sources of Income
The significant sources of income include the state and local per-pupil operating revenue, which was its primary source of operating revenue with $146,761,477 in 2023 (CohnReznik, 2023, p. 7).
Table 1.
Breakdown of Revenue for the Annual Report for Achievement First Brooklyn Charter Schools Relative to the Total Income in 2023
Source of Income
Revenue
State and local per-pupil revenue
82.36%
Federal, state, and local grants
8.35%
Special education
9.02%
Based on Table 1, the primary source of income accounts for 82.63% of the total operating revenues. Consequently, other sources of funds were federal, state, and local grants worth $14,828,382 (8.35%) and special education of $16,015,798 (9.02%) (CohnReznik, 2023, p. 7).
Costs
The overall expenses for the fiscal year were $170,028,927, of which $149,450,073 went to program services, accounting for 87.88%, while general and administration costs were $20,559,854 amounting to 12.09% (CohnReznik, 2023, p. 7). These data are most important for determining cost distribution and the school's dedication to providing its services, where program costs dominate.
Balance Sheet Analysis
Cash and Short-Term Investments
In 2023, the organization had cash amounting to $46,790,717 and $350,000 only of restricted cash. This gives a total of liquid assets of $47,140,717 (CohnReznik, 2023, p. 11). This has a dominant implication on the cardinality that points to the organization's capacity to manage cash and liquidity.
Current Liabilities and Debt Coverage
The school stated that current liabilities, payable w...
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