The following information was taken from the City of Wyoming, Michigan, schedule of direct and overlapping debt.

1. The schedule does not indicate the origin of the per centages of the debt applicable to the city. What is the most likely way these percentages were derived?
2. Compute the total amount of the City of Wyoming's direct and overlapping debt.
3. Another schedule in the city's annual report indicates that the city's net direct debt is 1.861 percent of the assessed value of its property and that net debt per capita is $354.47. The schedule reports that assessed value of property is $1,228,774,900 and that the population is 64,500. What would be the ratio of total net direct debt and overlapping debt to assessed value of property? What would be the total net direct and overlapping debt per capita?
4. Why might a statement user be at least as concerned with the ratios that include overlapping debt as with those limited to direct general obligationdebt?

  • CreatedAugust 13, 2014
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