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

* Population and property values are disclosed in the statistical section of the CAFR.
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 52,000 and the fair value of property totals $970 million.
B. For each ratio, indicate which of the two governments has a stronger financial position?

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Village of Riverside City of Salem (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) 2.7 times (6) Debt Service to Total Expenditures (7) Debt per Capita (government-wide, primary (8) Debt to Assessed Value of Property (governmental fund-basis) government) (government-wide, primary government) $468 4.68%