Using the annual financial report obtained for Exercise 11, answer the following questions: a. Report the following
Question:
Using the annual financial report obtained for Exercise 1–1, answer the following questions:
a. Report the following ratios, using the formulas appearing in Illustration 13-3 as a guide:
(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)
(6) Debt Service to Total Expenditures (governmental fund-basis)
(7) Debt per Capita (government-wide, primary government)*
(8) Debt to Assessed Value of Property (government-wide, primary government)*
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.
Step by Step Answer:
Essentials Of Accounting For Governmental And Not-for-Profit Organizations
ISBN: 9781260570175
14th Edition
Authors: Paul Copley