Reply 1 Richard
1. The major difference between a for-profit and a not-for-profit is the names for example for revenue goodwill calls if revenue and support and bottom line what other people call net profit but goodwill calls it net change in assets.
2. Good will utilizes performance ratio analysis because is provides members examples of where to get the best ideas and to do collaborations as far as providing services for the community.
3. The three major financial statements prepared by Goodwill are statement of activity, bottom line and statement of financial position.
3a. Cash flow analysis is of importance because it allows organizations to see how much cash is coming in, what is still owed to them, and how much is being paid out.
Reply 2
MOD 6 DB Fernando
What is the major difference between a for-profit and a not-for-profit organization? The main difference is that for profit can take invested money and use it to gain a return for the company and investors, whereas nonprofits take in donations and build the company so that can reinvest and help more people.
Why does Goodwill utilize performance ratio analysis? So that they can keep good track of all the money coming into good will from many different sources and must be measured because they still have revenue base and a bottom line. This will be used to determine what the future will look like and how to prepare for it.
Identify the three major financial statements prepared by the not-for-profit organization Goodwill. Why is cash flow analysis of particular importance in nonprofit organizations? They are income statement, balance sheet, and statement of cash flow. Cash flow analysis is important because it shows how much cash is on hand and shows what is coming in, what is owed and what’s being paid out to prevent going out of business.
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