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

a. Report the following ratios, using the text material for the Village of Elizabeth as a guide:
(1) Net debt per capita.
(2) Net debt to fair value of property.
(3) Net debt to assets.
(4) Debt service to total expenditures—General and debt service funds.
(5) Net assets/expenses.
(6) Unrestricted net assets/expenses.
(7) Unreserved fund balance/revenues—General Fund.
(8) Governmental revenues per capita.
(9) Interest coverage—revenue bonds.
(10) Operating ratio—enterprise funds.

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.