Comparative Ratios. (LO10-4) The government-wide financial statements for the City of Arborland for three years are...

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Comparative Ratios. (LO10-4) The government-wide financial statements for the City of Arborland for three years are presented below. Additional information follows: Population: Year 2023: 28,420, Year 2022: 28,291, Year 2021: 26,374. The 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 the screenshot below 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 2023. Show your computations. c. Provide an overall assessment of the City of Arborland's financial condition using all the information provided, both financial and non-financial. Use information from the prior years to form your assessment. Assets Current assets: Cash Investments Receivables (net) Prepaid expenses Inventories Total current assets Capital assets: Land Depreciable assets Accumulated depreciation Total capital assets (net) Total assets Liabilities Accounts payable Deferred revenue Other, current Total current liabilities Bonds payable Total liabilities Not Position Net investment in capital assets Restricted for: Capital projects Debt service Unrestricted (deficit) Total net position CITY OF ARBORLAND Statements of Net Position As of December 31 (In Thousands) $14.774 I 2023 Business- 2022 Governmental Activities type Activities Total Governmental Activities Business type Activities Total Governmental Activities 2021 Business- type Activities Total $ 4,540 733 $1,300 291 $ 5,840 $ 3,531 1,024 638 2.747 1.309 4,056 2,447 $1,163 181 1,108 $ 4,694 $ 3,052 819 3,555 253 8 261 251 6 257 26 58 84 101 48 149 8,299 2,966 11,265 6,968 2,506 9.474 3,180 3.101 37,600 (15,039) 14,455 6,281 52,055 (5.782) 20,821) 3,070 37,683 (16,732) 2.804 17,775 5.874 55,458 (9.776) (26,508) 25,741 34,040 11,774 37.515 24,021 10,803 34,824 14,740 48,780 30,989 13,309 44,298 1,580 467 2,047 412 376 788 32 32 30 30 1,754 200 1,954 1,443 190 1,633 3,366 15,900 19,266 667 4,033 1,885 566 $2,451 6,500 22,400 16.900 7,500 24.400 7,167 26,433 18,785 8,066 26,851 10,104 5,027 15.131 9.445 4,065 13,510 140 140 151 151 933 933 1.033 1,033 3,597 2.546 $7.573 6.143 $22,347 1,575 $12,204 1.178 $5.243 2,753 $17,447 $1,187 $ 4,239 769 179 948 1.865 1.072 2,937 171 5 176 167 49 216 6.024 2.492 8,516 2,371 $2,304. 39,347 14,801 4,675 54,148 (19.680) (7.402) (27,082) 22,038 9,703 28,062 12,195 31.741 40,257 295 1,928 42 1,489 170 1,659. 3.164 465 3,629 15,900 19,064 6,500 6,965 22,400 26,029 5,766 2,767 8,533 130 130 818 818 2,283 2,463 4,746 $ 8,997 $5,230 $14,227 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2023 (in thousands) Program Revenues Net (Expense) Revenue and Changes in Not Position Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business- type Activities Total Governmental Activities: General government $ 5,716 $ 531 S $ (5,185) $ (5,185) Judicial Public safety 1,926 716 99 (1,111) (1.111) 7,958 1,530 168 (6,260) (6,260) Health and sanitation 2,804 524 (2,280) (2,280) Culture and recreation 2,166 554 $495 (1.117) (1.117) Road maintenance 2,455 5 1,619 (831) (831) Interest on long-term debt 948 (948) (948) Total governmental activities 23,973 3,860 1,886. 495 (17,732) (17,732) Business-type activities 2,895 5,218 Total government $26,868 $9,078 $1.886 $502 (17.732) $2,330 2,330 2,330 (15.402) General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 17,296 17,296 2,190. 2,190 716 716 100 100 20,302 20,302 2,570 12,204 2,330 5,243 4,900 17,447 $14,774 $7.573 $22,347 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2022 (in thousands) Program Revenues Net (Expense) Revenue and Changes in Net Position Activities Business- type Activities Governmental Total Governmental Activities: General government $ 4,133 $ 148 $ (3,985) $ (3,985) Judicial Public safety 1,737 209 $ 17 (1,511) (1,511) 5,239 1,943 30 (3,266) (3,266) Health and sanitation 2,129 147 (1.982) (1,982) Culture and recreation 3,762 322 $350 (3,090) (3,090) Road maintenance 1,055 501 (554) (554) Interest on long-term debt 804 (804) (804) Total governmental activities 18,859 2,769 350 (15,192) (15,192) Business-type activities 4,287 $4,290. 13 13 Total government $23,146 $7,059 $548 $360 (15,192) 13 (15.179) Functions/Programs General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 13,619 13,619 3,664 3,664 916 916 200 200 18,399 18,399 3,207 3,220 8,997 5,230 14.227 $12.204 $5.243 $17,447 CITY OF ARBORLAND Statement Activities For the Year Ended December 31, 2021 (in thousands) Program Revenues Operating Grants and Contributions. Net (Expense) Revenue and Changes in Not Position Business- type Activities Total Expenses Charges for Services Governmental Activities: General government Judicial $ 3,922 $ 109 $ - 1,601 198 Public safety 4,113 1,723 Health and sanitation 2,096 216 Culture and recreation 3,484 364 Road maintenance 1,438 Interest on long-term debt 948 Total governmental activities 17,602 $2,610 g Business-type activities 2,637 3,708 Total government $20,239 $6.318 General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 Capital Grants and Contributions Governmental Activities $ (3,813) $ (3,813) (1,346) (1,346) (2,380) (2,380) (1,880) (1,880) $320 (2,800) (2,800) (978) (978) (948) (948) (14,145) (14,145) 20 $1,091 $340 $(14,145) 1,091 $1,091 (13,054) 13.100 2,990 13,100 2,990 681 150 681 150 16,921 16,921 2,776 1,091 6,221 $ 4,139 3.867 10,360 $ 8,997 $5.230 $14,227 Comparative Ratios. (LO10-4) The government-wide financial statements for the City of Arborland for three years are presented below. Additional information follows: Population: Year 2023: 28,420, Year 2022: 28,291, Year 2021: 26,374. The 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 the screenshot below 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 2023. Show your computations. c. Provide an overall assessment of the City of Arborland's financial condition using all the information provided, both financial and non-financial. Use information from the prior years to form your assessment. Assets Current assets: Cash Investments Receivables (net) Prepaid expenses Inventories Total current assets Capital assets: Land Depreciable assets Accumulated depreciation Total capital assets (net) Total assets Liabilities Accounts payable Deferred revenue Other, current Total current liabilities Bonds payable Total liabilities Not Position Net investment in capital assets Restricted for: Capital projects Debt service Unrestricted (deficit) Total net position CITY OF ARBORLAND Statements of Net Position As of December 31 (In Thousands) $14.774 I 2023 Business- 2022 Governmental Activities type Activities Total Governmental Activities Business type Activities Total Governmental Activities 2021 Business- type Activities Total $ 4,540 733 $1,300 291 $ 5,840 $ 3,531 1,024 638 2.747 1.309 4,056 2,447 $1,163 181 1,108 $ 4,694 $ 3,052 819 3,555 253 8 261 251 6 257 26 58 84 101 48 149 8,299 2,966 11,265 6,968 2,506 9.474 3,180 3.101 37,600 (15,039) 14,455 6,281 52,055 (5.782) 20,821) 3,070 37,683 (16,732) 2.804 17,775 5.874 55,458 (9.776) (26,508) 25,741 34,040 11,774 37.515 24,021 10,803 34,824 14,740 48,780 30,989 13,309 44,298 1,580 467 2,047 412 376 788 32 32 30 30 1,754 200 1,954 1,443 190 1,633 3,366 15,900 19,266 667 4,033 1,885 566 $2,451 6,500 22,400 16.900 7,500 24.400 7,167 26,433 18,785 8,066 26,851 10,104 5,027 15.131 9.445 4,065 13,510 140 140 151 151 933 933 1.033 1,033 3,597 2.546 $7.573 6.143 $22,347 1,575 $12,204 1.178 $5.243 2,753 $17,447 $1,187 $ 4,239 769 179 948 1.865 1.072 2,937 171 5 176 167 49 216 6.024 2.492 8,516 2,371 $2,304. 39,347 14,801 4,675 54,148 (19.680) (7.402) (27,082) 22,038 9,703 28,062 12,195 31.741 40,257 295 1,928 42 1,489 170 1,659. 3.164 465 3,629 15,900 19,064 6,500 6,965 22,400 26,029 5,766 2,767 8,533 130 130 818 818 2,283 2,463 4,746 $ 8,997 $5,230 $14,227 CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2023 (in thousands) Program Revenues Net (Expense) Revenue and Changes in Not Position Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions Governmental Activities Business- type Activities Total Governmental Activities: General government $ 5,716 $ 531 S $ (5,185) $ (5,185) Judicial Public safety 1,926 716 99 (1,111) (1.111) 7,958 1,530 168 (6,260) (6,260) Health and sanitation 2,804 524 (2,280) (2,280) Culture and recreation 2,166 554 $495 (1.117) (1.117) Road maintenance 2,455 5 1,619 (831) (831) Interest on long-term debt 948 (948) (948) Total governmental activities 23,973 3,860 1,886. 495 (17,732) (17,732) Business-type activities 2,895 5,218 Total government $26,868 $9,078 $1.886 $502 (17.732) $2,330 2,330 2,330 (15.402) General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 17,296 17,296 2,190. 2,190 716 716 100 100 20,302 20,302 2,570 12,204 2,330 5,243 4,900 17,447 $14,774 $7.573 $22,347 Functions/Programs Expenses Charges for Services Operating Grants and Contributions Capital Grants and Contributions CITY OF ARBORLAND Statement of Activities For the Year Ended December 31, 2022 (in thousands) Program Revenues Net (Expense) Revenue and Changes in Net Position Activities Business- type Activities Governmental Total Governmental Activities: General government $ 4,133 $ 148 $ (3,985) $ (3,985) Judicial Public safety 1,737 209 $ 17 (1,511) (1,511) 5,239 1,943 30 (3,266) (3,266) Health and sanitation 2,129 147 (1.982) (1,982) Culture and recreation 3,762 322 $350 (3,090) (3,090) Road maintenance 1,055 501 (554) (554) Interest on long-term debt 804 (804) (804) Total governmental activities 18,859 2,769 350 (15,192) (15,192) Business-type activities 4,287 $4,290. 13 13 Total government $23,146 $7,059 $548 $360 (15,192) 13 (15.179) Functions/Programs General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 13,619 13,619 3,664 3,664 916 916 200 200 18,399 18,399 3,207 3,220 8,997 5,230 14.227 $12.204 $5.243 $17,447 CITY OF ARBORLAND Statement Activities For the Year Ended December 31, 2021 (in thousands) Program Revenues Operating Grants and Contributions. Net (Expense) Revenue and Changes in Not Position Business- type Activities Total Expenses Charges for Services Governmental Activities: General government Judicial $ 3,922 $ 109 $ - 1,601 198 Public safety 4,113 1,723 Health and sanitation 2,096 216 Culture and recreation 3,484 364 Road maintenance 1,438 Interest on long-term debt 948 Total governmental activities 17,602 $2,610 g Business-type activities 2,637 3,708 Total government $20,239 $6.318 General Revenues: Property taxes Grants and contributions not restricted to specific programs Investment earnings Special item-gain on sale of land Total general revenues and special items Change in net position Net position-January 1 Net position-December 31 Capital Grants and Contributions Governmental Activities $ (3,813) $ (3,813) (1,346) (1,346) (2,380) (2,380) (1,880) (1,880) $320 (2,800) (2,800) (978) (978) (948) (948) (14,145) (14,145) 20 $1,091 $340 $(14,145) 1,091 $1,091 (13,054) 13.100 2,990 13,100 2,990 681 150 681 150 16,921 16,921 2,776 1,091 6,221 $ 4,139 3.867 10,360 $ 8,997 $5.230 $14,227