Explain the signicance of each of the following ratios For each of the ratios indicate whether an increase can be interpreted as a sign of (1) increasing or (2) decreasing scal strength Where appropriate, show how an increase in the ratio can be interpreted as a sign of either Explain and justify y...

1 A strong relatively higher current ratio indicates the ability to meet short term obligations as they come due a sign of fiscal strength However ina ...

Explain the signicance of each of the following ratios. For each of the ratios indicate whether an

Question:

Explain the signiﬁcance of each of the following ratios. For each of the ratios indicate whether an increase can be interpreted as a sign of (1) increasing or (2) decreasing ﬁscal strength. Where appropriate, show how an increase in the ratio can be interpreted as a sign of either. Explain and justify your response.
1. Cash, short-term investments, and receivables/Current liabilities
2. Revenue from own sources/Median family income
3. Number of employees/Population
4. Property tax revenues/Total operating revenues
5. Nondiscretionary expenditures/Total expenditures
6. Unassigned general-fund balance/Total operating revenues
7. Intergovernmental revenues/Total operating revenues
8. Expenditures for public safety/Total expenditures