MPA 503: Financial Statement Analysis and Preparation Report

This report analyzes the financial events of the American Research Council for Humanities (ARCH) and prepares key financial statements. The report includes a transactions worksheet detailing various financial activities, such as pledge payments, grant disbursements, donations, purchases, and sales. Based on the transaction data, an activity statement, balance sheet, and statement of cash flows are prepared, providing insights into ARCH's revenues, expenses, assets, liabilities, and cash flow. The analysis reveals strengths such as effective working capital management, sound gross profitability, and a strong liquidity position. Concerns include an overall net loss and a decrease in net assets. The report concludes with references to relevant accounting and financial management literature, offering a comprehensive view of ARCH's financial position and performance.