Compare the financial performance of the twoorganizations and provide suggestions (based on the comparison)...

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Accounting

Compare the financial performance of the twoorganizations and provide suggestions (based on the comparison) forthe Walden Conservatory of Music, both from a financial andoperational perspective. In Memo Format.
New England Conservatory of Music (NEC) Based on 2017Form 990
Liquid Funds Indicator = 4.25 months
Debt to Asset Ratio= 18.9%
Debt to NA ratio = 123.9%
Program Service Ratio = 85.9%
Savings Indicator = 22.5%
Current Ratio = 3.45
Defensive Interval = 3.24
Liquid Funds Amount = ($111,359,654)
Return on Investment = 4.94%
Times Interest Earned Ratio = 22.2
Walden Conservatory of Music Based on 2017 Form990
Liquid Funds Indicator: 1.52months
Debt to Asset Ratio: 18.3%
Debt to NA Ratio: 22
Program Service Ratio: 75.9%
Savings Indicator: 4.12%
Current Ratio: 2.34
Defensive Interval: 2.43
Liquid Funds Amount: ($580,418)
Return on Investment: 6.9%
Times Interest Earned Ratio: 6.36

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Particulars New England Conservatory of Music NEC Walden Conservatory of Music WCM Liquid Funds Indicator 425 months 152 months Debt to Asset Ratio 1890 1830 Debt to NA ratio 12390 22 Program Service Ratio 8590 7590 Savings Indicator 2250 412 Current Ratio 345 234 Defensive Interval 324 243 Liquid Funds Amount 111359654 580418 Return on Investment 494 690 Times Interest Earned Ratio 222 636 1 The liquid funds indicator LFI measures how many months the organization can continue before it exhausts its liquid assets assuming that no additional cash flows into the organization NEC can continue for more months as compared to WCM so its See Answer

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In: AccountingCompare the financial performance of the twoorganizations and provide suggestions (based on the comparison) for...Compare the financial performance of the twoorganizations and provide suggestions (based on the comparison) forthe Walden Conservatory of Music, both from a financial andoperational perspective. In Memo Format.New England Conservatory of Music (NEC) Based on 2017Form 990Liquid Funds Indicator = 4.25 monthsDebt to Asset Ratio= 18.9%Debt to NA ratio = 123.9%Program Service Ratio = 85.9%Savings Indicator = 22.5%Current Ratio = 3.45Defensive Interval = 3.24Liquid Funds Amount = ($111,359,654)Return on Investment = 4.94%Times Interest Earned Ratio = 22.2Walden Conservatory of Music Based on 2017 Form990Liquid Funds Indicator: 1.52months Debt to Asset Ratio: 18.3%Debt to NA Ratio: 22Program Service Ratio: 75.9%Savings Indicator: 4.12%Current Ratio: 2.34Defensive Interval: 2.43Liquid Funds Amount: ($580,418)Return on Investment: 6.9%Times Interest Earned Ratio: 6.36