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NonProfit Financial Management

NonProfitFinancial Management

Assetturnover: the asset turnover ratio is obtained by dividing net salesby total assets

Assetturnover = Net sales / Total assets

Netsales = 85,175,000

Totalassets = 411,550,000

Assetturnover = 85,175,000 / 411,550,000

=0.21

AccountReceivable Turnover = Net Credit Sales / Average Accounts Receivable

Netcredit sales = 0

Averageaccount receivable = 29,914,000

AccountReceivable Turnover = 0

Averagecollection period = 365 / Account Receivable Turnover

=365/ 0

=∞

Theaverage collection period for the company is undefined since it runsto infinity

Fixedassets turnover is calculated by dividing net sales by fixed assetsless accumulated depreciation

Fixedassets turnover = Net sales / Fixed Assets – AccumulatedDepreciation

Netsales = 85,175,000

Fixedassets = 143,331,000

Accumulateddepreciation = 11,620,000

Fixedassets turnover = 85,175,000 / (143,331,000 – 11,620,000)

=85,175,000 /131,711,000

=0.65

Debtto asset ratio is calculated by diving total liabilities by totalassets

Debtto Asset Ratio = Total Liabilities / Total Assets

TotalLiabilities = 16,798,000

TotalAssets = 411,550,000

Debtto Asset Ratio = 16,798,000 / 411,550,000

=0.04