Example financial statements to illustrate financial ratios in a local church

I have started a series of posts about ratios used by lenders when considering a church loan.  Here are the financial statements I made up to illustrate the series.

A loan officer would extract data from these financial statements to evaluate whether the church is healthy enough to afford the loan.  The overall health of this fictitious example is probably slightly better than the typical church today, but that is just my guess.

Example Community Church – financial statements

Statement of financial position (a.k.a. balance sheet)

  • Assets
  •    200,000 – cash  
  •    300,000 – other assets  
  • 5,500,000 – land, building, and equipment  
  • 6,000,000 – total assets  
  •  
  • Liabilities
  •    200,000 – current liabilities  
  • 4,000,000 – long-term debt  
  • 4,200,000 – total liabilities
  • 1,800,000 – net assets
  • 6,000,000 – total liabilities and net assets 

Statement of activity (a.k.a. income statement):

  • Income
  • 1,400,000 – contributions  
  •    100,000 – other revenue  
  • 1,500,000 – total revenue  
  •  
  • Expenses
  •    500,000 – salary  
  •    200,000 – interest  
  •    300,000 – utilities and other occupancy costs  
  •    400,000 – other expenses  
  •    150,000 – depreciation  
  • 1,550,000 – total expenses
  •  
  •     (50,000) – change in net assets  

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