The Walden Conservatory case requires students to read and understand nonprofit financial statements and helps students learn how to assess the financial performance of a nonprofit organization. The case also provides opportunities to sharpen students' critical thinking skills through analyzing the financial performance of the conservatory and providing strategic recommendations for managers. In addition, the case requires students to consider nonfinancial information when making strategic recommendations to managers. In addition to the provided solutions, instructors can access resources pertaining to the Sustainability Mindset at http://www.nonprofitsustainability.org/.
Use the given financial statements of the Walden Conservatory of Music (WCM) from 2014 to 2018 to complete the financial analysis requirements.
Instructors can decide whether they want to provide the ratio template presented in Table 1 (copied from Microsoft Excel) to students to facilitate ratio calculations in Excel.
Table 2 presents the classification and calculated results of the provided ratios.
It is important...
