TABLE 9.4Financial Statement for a Small Nonprofit OrganizationfigureThe profit margin ratio is problematic because the nonprofit had a slight deficit this year. Questions that need to be answered include: Is this loss a one-time event or has this nonprofit been in this situation before? Is this nonprofit building intergenerational equity over time? What is the trend over five or ten years?Looking at the degree of diversity in revenues the analyst can see that this nonprofit organization depends heavily on government contracts; in contrast contributions are quite a small proportion of the revenues. Certainly the nonprofit would benefit from a greater emphasis on contributions.It is possible to conclude that although the nonprofit does not have immediate concerns about liquidity and solvency this nonprofit organization needs to stabilize its profit margin and improve its sustainability of resources through revenue diversification. More could be learned through an in-depth examination of the sources and uses of revenue.TABLE 9.5Statement of Financial Position (Balance Sheet) for a Small Nonprofit OrganizationCurrent assets Cash $271671Temporary cash investments 619941Accounts receivable 45918Pledges receivable 183962Prepaid expenses 168270 Total current assets $1289762 Long-term assets Investments $2033200Land buildings 1612164Other assets 30751 Total long-term assets $3676115 Total assets $4965877Current liabilities Accounts payable $200000Accrued expenses 48695Total current liabilities $248695Long-term liabilities Mortgage $381458 Total liabilities $630153 Net assets Unrestricted $2509727Temporarily restricted 825997Permanently restricted 1000000 Total net assets $4335724 Total liabilities and net assets $4965877TABLE 9.6Statement of Activities (Income Statement) for a Small Nonprofit OrganizationRevenue Contributions $565032 Grants 1182215 Government contracts 1459639 Fees and membership dues 529243 Interest and gains 86637 Total revenue $3822766 Expenses Salaries $2187465 Benefits 475454 Total PS $2662919Chen G. G. Forsythe W. D. Weikart A. L. Williams W. D. (06/2008). Budget Tools: Financial Methods in the Public Sector 1st Edition. [Strayer University Bookshelf]. Retrieved from https://strayer.vitalsource.com/#/books/9781483304571/