Financial Statements

Title Your Name Subject and Section Professor’s Name Date 1 Did the financial statements confirm your impression of the organization’s financial status? Why or why not? Yes. A review of all the financial statements reveals that Achievement First Brooklyn Charter Schools are in good financial health. The net assets grew by $58,428,995 in 2022 to $70,214,452 in 2023, demonstrating a positive trend with an increase of $11,785,457 (CohnReznick, 2023, p. 7). From the government funding, the school's operating revenues and net operating expenses resulted in a surplus of $7.58 million. Also, it has a substantial cash reserve of $46,790,717 (CohnReznick, 2023, p.5). Keynes' Liquidity Preference Theory explains that having an adequate amount of cash reserves allows for an allowance for future transaction costs, investing in future growth opportunities when the need arises, and a leeway for financial crises. These factors, taken in the aggregate, contribute to the school's financial stability and preparedness to support operations (Yun et al., 2020). Furthermore, its source of financial strength is the stable ratio of long-term liabilities, which are primarily lease liabilities ($2,304,911) to total assets ($82,303,104) and weak dependence on credit, which is explain...