ZETLOCK'S FINANCIAL PERFORMANCE ASSESSMENT

* Key Stakeholders and Their Incentives and Objectives

* Financial Disclosure Requirements

* Other Limitations To Accurate Assessments of Financial Performance

* Statement of Financial Condition

* Supplemental Disclosures in an Annual Report

Trend Analysis:

- At least 3-years of financial information is required.

- Look for positive and sustained growth.

Comparisons in Relation to the Budget

Profitability Measures:

- The objective is to generate a profit that can be used to finance the program services. Compare the profit to the size of the activity.

* Return on Investments = Investment income / Average Investments

* Gross margin = (Sales of Merchandise - Cost of Goods Sold) / Sales of Merchandise

* Margin on Rental Activities = (Rental Revenue - Rental Expenses) / Rental Revenue

Liquidity Ratios

- Free Cash Flows

- Current Ratio = Current Assets / Current Liabilities

Current assets are cash, receivables, inventories, and prepaid expenses.

Anticipated Improvements