Analysis Of Financial Statements And Balance Sheet

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Analysis of Financial Statements Balance Sheet There are several items that stand out when looking at the FY 2014 balance sheet. First, the majority of current assets are in the form of high liquidity investments, such as mutual funds or stocks. The organization has enough cash to cover its liabilities, so it is appropriate to invest any money not being used. Also, 99% of WPP 's net assets are unrestricted. This is preferred by many not-for-profit organizations because it allows them to use funds freely (Finkler, et al., 2013, p. 313-355). However, the WWP has made headlines recently because of extravagant spending (Phillips, 2016). It is in the organization’s best interest to allow donors to place restrictions on their donations to…show more content…
Cash flows from operating activities includes changes in net assets followed by depreciation, inventories and so on. During FY 2014, net cash provided by operating activities increased from $82,492,192 to $110,474,934. This shows that the organization has been able to increase revenue, which will allow it to improve and expand its services. Cash flow from investing activities is generated from the purchase of property and sales of investments. WWP had made a purchase of property and equipment worth $4,344,875 and also received $6,083 in proceeds from disposal and equipment during FY 2014. As a result, WWP’s net cash used in investing activities had an increased deficit of $104,888,747 in FY 2014. At the end, net change in cash was calculated by combining net cash flows from operating and investing activities for the given year. During FY 2013, WWP increased its net cash by $2,829,274. For FY 2014, net cash increased $5,586,187. The steady increase in net cash shows that WWP is financially stable, as it has a surplus each year. Statement of Activities The WWP’s consolidated statement of activities show(s) a gain from net assets during FY 2014. Net assets in the beginning of the year were $175,498,020. The year ended with $285,770,545, which shows that there was a gain of a little over $1 million in net assets. WWP ended the year with a surplus, which gives it the opportunity to increase investments or enhance its current
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