Presented below are the computed amounts of ratios for the Village of Elizabeth example appearing in the chapter.

a. Using the financial statements provided in Illustrations 2€“5 through 2€“11, compute ratios for the City of Salem. Assume the population of Salem is 41,000 and the fair value of property totals $850 million.
b. For each ratio, indicate which of the two governments has a stronger financialposition.

Village of Elizabeth City of Salem Net debt per capita Net debt to fair value of property Net debt to assets 105.43 1.054% Governmental activities Business-type activities Primary government 2.78% 61.4% 8.68% 4.12% Debt service to total expenditures Net assetslexpenses Governmental activities Business-type activities Primary government 4.44 1.93 4.22 0.1053 0.4858 0.1394 13.01% $800.13% 2.31 times 50.72% Governmental activities Business-type activities Primary government Unreserved fund balance/revenues Governmental revenues per capita Interest coverage revenue bonds Operating ratio -enterprise funds