Information Management Design
Financial indicators are the absolute values that characterize the creation and use of financial resources in an organization, its financial position, and results of operations, as well as the level of income distribution and redistribution of products by means of finance. Financial indicators determine the quantitative and qualitative characteristics of economic phenomena and processes. Financial reports of an organization are the source of information about the company used by not only analysts but also the companys management, investors, and stakeholders. It is important for the users of information on financial ratios to understand the basic characteristics of the core indicators of financial statements and the analysis concept for a viable coefficient analysis.
As a result, the essay will present three reports prepared for the Board of the enterprise, granting agencies and the companys donor respectively. Financial reports will contain the relevant numbers and derivative data, such as financial ratios, along with the interpretation of the presented information for every reporting party. The data will be taken from the companys cash flow statement while the discussed timeframe will be related to 2013 reporting year. Finally, prepared reports will allow each party to understand the companys revenue for 2013 and assess their interest in it.
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Financial Analysis Prepared for the Board of the Organization
The financial report prepared for the Board of the enterprise focuses on the most accurate reflection of the actual financial processes the company had in 2013 reporting year. In particular, the data is presented for deals with accounting obligations, writing off expenses, depreciation and the evaluation of equity. Additionally, the report includes managerial reporting to concentrate on internal aspects of the entity. This part of the report interprets the production data, information about the work with debtors and creditors, and inventory data, etc.
The companys operating profit became 671,505.05 in 2013 reporting year. Given the fact that it was granted 117,018 for individual contributions, 164,343 for Board member contributions and 46,224 of grants, the total net sales were estimated at 343,920 at the end of 2013. As a result, the companys return on sales became 195%. The results of the companys return on sales allow stating that the organization can invest in long-term projects and spend on the business development and its competitiveness. An increase in the return on sales is also due to the fact that the average sales for the companys performances grew during the discussed period and the total attendance remained unchanged in 2013 even despite the fact that the number of performances dropped down from 9 to 8 in 2013 compared to 2012.
The company managed to increase the income by 1.67% in 2013 compared to 2012 when the revenue was 660,496. At the same time, it was reported 666,829 of the total expenditures in 2013, which is 0.96% higher than costs spent in 2012 when total expenses was estimated at 660,496.
From the standpoint of the ways of gathered revenue, a significant part of it was collected thanks to grants allowed by the company, individual contributions, corporate events and other sources of the income. In particular, it was reported an increase by 84.9% of the revenue collected from grants, which became 46,224 in 2013 compared to 2012 when the value leveled at 25,000. The revenue collected from individual contributions improved to 41.95% and was 117,018 in 2013 compared to 82,435 of the value reported in 2012. The income collected from corporate events grew by 25.72% and became 37,715 in 2013 while it was 30,000 in 2012. Finally, 30.92% of the growth in revenue was related to other sources of profit and estimated at 29,167 in 2013 while it was collected 22,279 from this part of the sources in 2012.
It was also estimated that ticket prices grew to $5 across the board, 20% of both tickets and donations came from patrons with no prior affiliation with the company and total donations improved by 5% in 2013 compared to 2012 reporting year. At the same time, such non-performance events as Spring Gala and Taste of the Season operated efficiently and brought the company a positive income even with a slight increase to 8.47% and 4.28% of Spring Gala and Taste of the Season events respectively in 2013.
The results of the companys expenses allowed stating that they were higher in 2013 compared to 2012. It means that the companys product/service portfolio increased in 2013 compared to 2012, as well as associated with it administrative expenditures. Thus, the company allocated 396 costs on the new range of services named Bravo Events and increased its personnel by improving the office expenses to 67.43% in 2013. The transportation costs grew by 504.46% consequently. The expenditures on costumes required for the conduction of events were improved to 25.09%. The costs on playbills were also improved by16.29% more in 2013 compared to 2012. Additionally, it was estimated the growth by 38.93% in expenditures for insurance and other associated with it costs, as well as the increased in 16.75% in tech/set costs in 2013.
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Financial Analysis Prepared for Granting Agencies
The financial report prepared for granting agencies shows the dynamics of the companys financial indicators. The report will allow granting agencies to estimate the share of grants and contributions allowed by the organization, as well as realize the financial stability and goodwill of the enterprise.
Thus, the organizations income grew by 1.67% in 2013 compared to 2012 when it was collected 660,496 of the profit. A great level of the revenue collection was associated with the receivables that come from individual contributions, corporate events and other sources of the income. In particular, it was reported an increase by 84.9% of the income accumulated from grants that was 46,224 in 2013 compared to 2012 when the measurement was reported at 25,000. The profit accumulated from individual contributions grew by 41.95% and amounted to 117,018 in 2013 compared to 82,435 of the measurement reported in 2012. The revenue accumulated from corporate events was higher by 25.72% rather than in 2012 and was estimated as 37,715 in 2013 while it was estimated as 30,000 in 2012. Finally, 30.92% of the jump in receivables was associated with other sources of income and reported at 29,167 in 2013 while it was accumulated 22,279 that were related to this part of the receivables in 2012.
It was also calculated that non-performance events Spring Gala and Taste of the Season were profitable and allowed accumulating positive revenue even with a slight growth by 8.47% and 4.28% of Spring Gala and Taste of the Season events respectively in 2013.
The results of the companys costs allowed tracing 0.96% of the increase in the expenditures in 2013 compared to 2012. It means that the enterprise extended the range of offered product/services in 2013 compared to 2012, which resulted in the growth of respected administrative costs. Thus, it cost 396 of the monetary value for the entity to extend a new range of services named Bravo Events. The costs were also included the expenditures required to hire more employees to provide its customers with the companys current and recently introduced services by improving the office expenses to 67.43%, transportation costs that increased by 504.46%, costs on costumes the measurement of which improved to 25.09%, as well as spent to 16.29% more on playbills in 2013 compared to 2012. Additionally, it was estimated the jump in 38.93% in expenditures for insurance and other associated with it costs, as well as the jump by 16.75% in tech/set costs in 2013.
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Financial Analysis Prepared for Donors
2013 reporting year was characterized by a positive change in the companys annual revenue, which grew by 1.67% compared to the previous fiscal year when it was estimated as 660,496 of the annual profit. The positive change of the value was mainly related to a successful activity of grants. Thus, it was reported an increase by 84.9% of the income accumulated from grants that was 46,224 in 2013 compared to previous fiscal year when the value was evaluated as 25,000. The performance of such events as Spring Gala and Taste of the Season was also profitable and had an impact on a positive change of the firms. Given the estimates presented for 2013 fiscal year, it is possible to state that there was a slight growth in income related to these events. In particular, the form allowed improving the activity of related events by 8.47% and 4.28% respectively in 2013. Additionally, the company added a new service to its product portfolio, which was Bravo Events. It was expected that Bravo Events would operate effectively in the upcoming years and become a part of a positive change of the organizations annual income.
In general, the ticket prices increased $5 across the board in 2013. 20% of both tickets and donations came from patrons with no prior affiliation with the company. Total donations increased by 5% in 2012 comparing to 2012.
The essay has discussed three financial analysis reports presented to the Board of the company, granting agencies and donors. The discussed information and figures were taken from the companys cash flow statement for 2013 reporting year. During the conduction of the financial analysis for every involved party, it has been noticed that financial analysis differs from each other depending on the party it is addressed to.
Thus, the financial analysis report of the companys operating and financial activity during the 2013 year is a detailed report that includes financial and managerial information related to the enterprises operational activity during the discussed year. The report is also full of details about expenses and their year-to-year change, which has allowed realizing whether the operational activity of the enterprise was effective and profitable in 2013 or not.
The financial analysis report prepared for granting agencies is a report that contains limited information. Given the fact that granting agencies pay significant attention to the outlining of more information related to the companys revenue and positive changes in financial indicators, as well as its liabilities, the report has discussed the growth in revenue and associated with it sub-sections. Additionally, it was also paid attention to the significance of the grants and contributions allowed by the company for grant agencies to better understand the level of contribution of this part of the receivables to the companys annual profit.
The financial analysis report prepared for the companys donors includes mainly the information about the amount of donations carried out in the discussed reporting year, as well as the companys annual revenue.