17 Homework However, conducting a financial statement analysis does provide a better understanding of the federal government. To assist in the financial statement analysis, use Illustration 17-2 and Illustration 17-3 along with the following excerpts from the 2016 Financial Report of the United States Government. (Hint When using revenues or net costs, use the consolidated amounts, which are adjusted for intra- entity activity.) UNITED STATES GOVERNMENT Statements of Changes in Cash Balance from Unified Budget and Other Activities For the Years Ended September 30, 2016, and 2015 (In billions of dollars) Reclass 2015 2016 3,266.7 (3,854.1) (587.4) 3,248.7 (3,687.6) (438.9) 264.1 (12.7) 11.8 263.2 245.4 26.8 (22.0) 250.2 (262.7) (80.3) (11.6) (10.2) 1.6 (0.7) (243.5) (119.9) 17.4 9.8 (0.3) 20.5 Cash flow from unified budget activities Total unified budgetary receipts Total unified budgetary outlays Unified budget deficit Adjustments for non-cash outlays included in the unified budget Interest accrued on Treasury securities held by the public Agencies year-end credit reform subsidy re-estimates Subsidy expense accrued under direct loan & guarantee programs Subtotal - adjustments for non-cash transactions in unified budget Cash flow from activities not included in unified budget Cash flow from non-budget activities Interest paid on Treasury securities held by the public Other direct loan transactions Repayment of principal on direct loans Other guaranteed loan transactions Miscellaneous liabilities Deposit fund liability balances Seignora Subtotal - cash flow from non-budget activities Cash flow from monetary transactions Loans to the IMF Other monetary assets Special drawing rights Subtotol - cash flow from monetary transactions Cash flow from financing Borrowing from the public Repayment of debt held by the public Effect of uninvested principal from the Thrift Savings Plan (SP) G Fund Agency securities Subtotol - cash flow from financing Other Change in cash balance Beginning cash balance Ending cash balance (315.4) 0.9 1.9 0.6 2.5 8.7 8,398.4 (7,343.3) (293.2) 7,037.5 (6,700.6) 283.2 5.10.2 159.5 10.2 254.9 385.1 464.6 Property, Plant, and Equipment As of September 30, 2016 (In billions of dollars) Buildings, structures, and facilities Furniture, fixtures, and equipment Construction in progress Land Internal use software Assets under capital lease Leasehold improvements Other property, plant, and equipment Subtotal Total property, plant, and equipment, net Cost All Defense Others 384.1 275.3 1,054.5 172.7 118.1 46.5 10.7 13.0 9.5 33.1 0.4 4.1 0.6 10.4 10.3 10.8 1,588.2 565.9 2,154.1 Accumulated Depreciation/ Amortization All Defense Others 238.1 150.8 639.7 113.3 N/A N/A N/A N/A 6.0 20.7 8.2 1.7 0.3 6.3 5.5 876.3 298.3 1,174.6 Net All Defense Others 154. 124.5 414.8 59.4 118.1 46.5 10.7 13.0 3.5 12.4 0.2 2.4 2.3 4.1 10.3 5.3 711.9 267.6 979.5 Required a. To provide an indication of the government's financial capability, answer the following: (1) What percentage of total revenues comes from individual income taxes and withholdings? (2) What is the debt service as calculated by the ratio of principal and interest payments on debt held by the public to total revenue? b. To provide an indication of the government's financial performance, answer the following: (1) What is interperiod equity, as calculated by the ratio of revenue to net costs? C. To provide an indication of the government's financial position, answer the following: (1) What is the ratio of nondedicated collections funds to total revenue? (2) What is the quick ratio (use known current oblities in the calculation)? (3) What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable capital Assets Cash and other monetary assets Accounts and taxes receivable, net 464.6 305.1 117.8 133.3 1,277.6 1,216.0 320.6 314.3 979.5 925.3 Loons receivable, net Inventories and related property, net Property. plant and equipment, net Debt and equity securities Investments in government-sponsored enterprises Other assets 48.2 104.4 108.6 106.3 1657 144.4 3,470.5 Total assets 3,261.2 62.4 14.221.1 7.209.4 Stewardship land and heritage assets Liabilities: Accounts payable Federal debt securities held by the public and accrued interest Federal employee and veteran benefits payable Environmental and disposal liabilities Benefits due and payable Insurance and guarantee program liabilities Loan guarantee liabilities Other liabilities 68.3 13.172.5 6.772.4 411.6 213.9 446.6 218.2 122.3 170.3 15.2 36.3 4642 6595 Total liabilities 22.7629 21.504 S Contingencies and Commitments Net Position: Funds from Dedicated Collections Funds other than those from Dedicated Collections 3,374.3 3.247.7 22.066) 19.292 C1493 (9.243.0 Total net position Total liabilities and net position 370.5 3.2612 TERUSTRATION 17-3 UNITED STATES GOVERNMENT Statement of Operations and Changes in Net Position For the Year Ended September 30, 2016 (In billions of dollars) Funds other than those from Dedicated Collections (Combined) Funds from Dedicated Collections (Combiued) Eliminations Consolidated 1.077.7 1,525 5 2943 42.1 58.3 46.9 Revenue! Individual income tax and tax withholdingo Corporation income taxes Excise taxes Unemployment taxes Customs duties Estate and gift taxes Other taxes and receipts Miscellaneous earned revenues Intragovernmental interest Total Revenue Net Cost of Government Operations: 2.6032 294.3 100.4 46.9 333 21.0 2280 18.2 333 21.0 195.1 15.3 429 2.9 1028 1.331.5 (102) (1029) 2.116.6 3.345,2 4.404.4 Net cost 1.605.7 3.7 (1029) (1023) 4,4014 16144 409,5 Intragovernmental ner cost Intragovernmental interest Total net cott Iutragovernmental transfers Unmatched transactions and balances Net operating cost revenue Net position, beginning of period Prior period adjustments-changes in accounting principles Net operating (cost revenue Net position, end of period 2.793.7 (8.7) 102.5 2.892.8 (409,5) 107 (1.1740) 121.1913) (1.4) (1.174.03 1266 3.2477 (1.047.4) (16.243.6) (1.4) (1.047.4) (19.2924) 1 26.6 3,3743 (22.6667) - (2) What is the quick ratio (use known current liabilities in the calculation)? (3) What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable ca assets? Complete this question by entering your answers in the tabs below. Required A Required B Required c a. To provide an indication of the government's financial capability, answer the following: (1) What percentage of total revenues comes from individual income taxes and withholdings? (2) What is the debt service as calculated by the ratio of principal and interest payments on debt held by the public to total revenue? (Do not round intermediate calculations. Round percentage answers to 1 decimal place.) Show less Total Revenues Debt Service 96 Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C c. To provide an indication of the government's financial position, answer the following: (1) What is the ratio of nondedicated collections funds to total revenue? (2) What is the quick ratio (use known current liabilities in the calculation)? (3) What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable capital assets? (Do not round intermediate calculations. Round percentage answers to 2 decimal place.) Show les Non-dedicated Collections Funds Ratio Quick Ratio Capital Asset Condition Complete this question by entering your answers in the tabs below. Required A Required B Required C c. To provide an indication of the government's financial position, answer the following: (1) What is the ratio of nondedicated collections funds to total revenue? (2) What is the quick ratio (use known current liabilities in the calculation)? (3) What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable capital assets? (Do not round intermediate calculations. Round percentage answers to 2 decimal place.) Show les Non-dedicated Collections Funds Ratio Quick Ratio Capital Asset Condition