Using the annual financial report obtained for Exercise 1–1, answer the following questions:

a. Report the following ratios, using the formulas appearing in Illustration 13-3 as a guide:

(1) Financial Position (government-wide, governmental activities)

(2) Financial Position (General Fund)

(3) Quick Ratio (government-wide, governmental activities)

(4) Leverage (government-wide, primary government)

(5) Debt Service Coverage (enterprise funds)

(6) Debt Service to Total Expenditures (governmental fund-basis)

(7) Debt per Capita (government-wide, primary government)*

(8) Debt to Assessed Value of Property (government-wide, primary government)*

b. Write a memorandum, based on the ratios you calculated in part (a) of this problem, giving a recommendation as to whether to purchase (1) general obligation or (2) revenue bonds of your governmental unit.