Examine the financial statements for the City of Atlanta in the appendix to this chapter.
1. The balance in unrestricted net assets can be positive or negative. A negative balance would indicate that the government owes more than it owns. What is the balance in unrestricted net assets for the governmental activities?
2. Does the balance in the unrestricted net assets indicate that the city has cash available to spend? Examine the amount of cash and cash equivalents on the statement of net assets.
Does the city have enough cash to spend? If not, what would the city need to do to have cash available?
3. Net assets are considered restricted if their use is constrained for a specific purpose. What is the largest purpose listed for restricted net assets?