Analysis of Financial Statements

Analysis of Financial Statements

Introduction

Valley of the Sun United Way is a non-profit organization working in the city of Arizona. The main aim of the organization is to increase the caring ability in the whole community. The organization receives funds from different sources in order to support the health and human resource services. The donors of the organization can use the donations to invest in different areas. The auditing of the organization is done by Ernest & Young who have reported the changes in the revenues and expenses of the firm over the years 2010 to 2011. The audited financial statements of the organization help in finding out the changes in the line items recorded in the financial statements of the organization. The financial statements have helped in finding out the increase and decrease in the line items and it has also analyzed the factors that led to the effect in the changes of these items. The SWOT analysis will further help in finding out the weak areas of the firm, areas where enhancement is needed and areas where opportunities are available for the firm.

Discussion

The answer of the following questions will help in analyzing the financial performance of the firm during 2010 till 2011.

Line items on the financial statement

The statement of activities shows all the revenues, expenses, cost, funds, donations and all other line items. As the Valley of the Sun United is not a profit generating organization thus the income statement of the organization is presented through the activities statement. The activities statements of the organization show that the line items such as the revenues of the organization have increased from the year 2010 to 2011. The second line item shown in the financial statements show that over the year's expenses of the firm has also ...