Answer for question 2

6a) ratio: administrative and office salaries

IBC Fargo
Administrative
Net education income

office salaries
net education income

294028
4187
=70.78%

107251
4187
=25.61%

IBC Bismarck
39662
(27296)
=145.30%

30000
(27296)
=110%

@
2) administrative expanses
IBC Fargo
Administrative expanses
Net educational income
122752
4187
=29.31%
IBC Bismarck
18321
(27296)
67.12%
6b)
6c) from income statement IBC-Fargo 1993 until 1996 can see relationship between net educational
income and office salaries as apercantage of gross tution revenue as calculate bellow
Office salaries
Net educational income
1993
324000
3581205
=9.05%

1994
338718
3603921
=9.40%

1995
503526
3529745
=14.25%

1996
85625
2582694
=3.32%

As can see from calculation made for that ratio. We can see that, from 1993 untill 1994 thare had no
problem for ratio analysis. But for 1995 thare some of suspisius amount recorded. If look on base
office salaries trend from 1993 until 1995 it show increase. But if increase in net educational invome
it also cause increase in office salaries. It might related with increase number of employee and

increase in expanses. But in 1995 it show increase almost 48.66% or $164808 from 1994 but for net
educational trend show decrease. But for 1996 it suddenly show decrese for 478.74% or $417874
but trend of net educational income dercrase at small amount. How can be office salaries and net
educational income can give significant relationship. To answers it we look on total educational
income after decdution educational expanses

1993
324000
255711
=126.71%

1994
338718
176626
=191.77%

1995
503526
196755
=256%

1996
85625
172094
=49.75%

Trend show increase from 1993 until 1995. But in 1996 it show decrease at large amount compared
increase amount. In 1995 until 1995 decreased amount almost five times. In relationship increase in
in office salaries cause decrease in net educational income in rational. But in 1996 it show vice versa
relationship.