Question:
The government-wide
financial statements for the City of Arborland for a three-year period are presented below. Additional information follows:
Population: Year 2020: 30,420, Year 2019: 28,291, Year 2018: 26,374. Debt limit remained at $20,000,000 for each of the three years. Net cash from operations is generally 80 percent of total revenues each year.
Required
a. Which of the financial performance measures in Illustration 104 can be calculated for the City of Arborland based on the information that is provided?
b. Calculate those ratios identified in part a for FY 2020. Show your computations.
c. Provide an overall assessment of the City of Arborlands financial condition using all the information provided, both financial and non financial. Use information from the prior years to form your assessment.
Data From Problem 10-4
Identify some of the characteristics of a governments citizens that can affect the governments financial condition. Explain how the characteristics affect financial condition.
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
CITY OF ARBORLAND Statements of Net Position As of December 31 (In Thousands) 209 2020 2018 Business Business Bus iness Governmental Govemmental Activities type Govermmental type Activities type Total Total Activit les Activities Activities Total Activities Assets Curentassets: $ 5,540 $ 1,800 291 1,809 $ 7,340 $ 4,531 $ 1,663 181 1,608 $ 6,194 819 4,555 $ 3,452 769 1,865 $ 1,487 $ 4,939 Cash 733 1,024 638 179 1,472 948 Investments 2,947 2,747 4,556 3,337 Receivables (net) 253 261 84 251 101 6. 48 257 149 Prepaid expenses 171 176 49 Inventories 26 ,299 58 966 167 424 216 8,468 3,50 Total current assets 13,265 11,974 3,192 Capital assets: 3,575 54,148 3,874 2,180 2,101 4,281 2,070 1,804 1,971 1,604 Land 37,600 14,455 52,055 37,183 17,775 54,958 39,347 14,801 Depredable as sets (9.776) 9,803 13.309 (7.402) 9,003 12,195 Accumulated depredaton Total capital assets (net (15.039 24,741 34,040 (5,782) 10,774 (20821) 35,515 (16,732) 22,521 30,989 (26,508 32,324 44,298 (19,680) 21,638 28,062 (27,082) 30,641 40,257 Total assets 14,740 48,780 Liabilities Accounts payable Deferredrevenue Other, current 1,580 467 2,047 412 376 788 1,633 295 1,928 32 32 1,954 30 30 42 42 1,754 3,366 200 667 190 566 1,633 2,451 1,489 3,164 170 1,443 1,885 16,900 1,659 3,629 22,400 Total aurrent liabilites Bonds payable 4,033 465 15,900 19,266 6,500 7,167 22,400 26,433 7,500 8,066 24,400 26,851 15,900 19,064 6,500 6,965 Total liabilities 18,785 26,029 Net Position 9,104 4,027 13,131 7,945 3,065 11,010 5,366 2,067 7,433 Net investment in capital assets Restitcted for: Capital projects 140 140 130 130 151 151 1,033 933 933 1,033 818 818 Debt service Unrestitcted (defcio Total net position 8143 21 78 5,243 4,597 2,683 5,846 $14,227 3,546 $ 7,573 3,075 $12,204 5.253 $17,447 3.163 5,230 $ 8997 $14,774 $22,347 CITY OF ARBORLAND State ment of Activities For the Year Ended December 31, 2020 (in thousands) Net (Expense) Revenue and Changes in Net Position Program Revenues Charges Operating Capital Business for Grants and Grants and Governmental Con tributions Con tributions type Activities Functions/Programs Expen ses Services Activities Total Governmenta Activities: General government $ 531 $ 5,716 $ 15,185) $15,185) (1,111) (6,260) (2,280) 716 1,530 99 168 Judidal 1,926 7,958 (1,111) (6,260) (2,280) Public safety Health and sanitation 2,804 524 Culture and recre ation 2,166 2,455 554 $495 (1,117) (831) (1,117) (831) Road maintenance 1,619 948 (948) (17,732) 2,330 (15.402) Intereston long-term debt (948) (17,732) 23,973 2,895 3,860 1,886 495 Total governmental actvities Busines s-type activities 5,218 $2,330 Total government $26,868 $9.078 $1.886 $502 (17.732) 2,330 General Revenues: 17,296 17,296 Pioperty taxes Grants and contributions notrestricted to spedfic programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position 2,190 2,190 716 716 100 100 20,302 2,570 20,302 4,900 2,330 Net position-January 1 12,204 $14,774 5,243 17,447 $22,347 Net position-December 31 $7.573