Exercise $17-23($Static$)$ Financial Statement Analysis of the Federal Government $[$LO $17-4]$

The complexity and uniqueness of the federal government make it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide a better understanding of the federal government. To assist in the financial statement analysis, use Illustration $172$ and Illustration $173$ along with the following excerpts from the $2019$ 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 Budget and Other Activities

For the Years Ended September $30,2019,$ and $2018$

$($In billions of dollars$)$

$2019$ Reclass $2018$

Cash flow from budget activities

Total budget receipts $3,462\mathrm{.}23,328\mathrm{.}7$

Total budget outlays $(4,446\mathrm{.}6)(4,107\mathrm{.}7)$

Budget deficit $(984\mathrm{.}4)(779\mathrm{.}0)$

Adjustments for non$-$cash outlays included in the budget

Non$-$cash flow amounts in the budget related to federal debt securities

Accrued interest $305\mathrm{.}5268\mathrm{.}5$

Net amortization $65\mathrm{.}741\mathrm{.}9$

Other $(33\mathrm{.}3)1\mathrm{.}1$

Subtotal $-$ adjustments for non$-$cash flow amounts in the budget related to federal debt securities $337\mathrm{.}9311\mathrm{.}5$

Non$-$cash flow amounts in the budget related to loan financing account activity

Interest revenue on uninvested funds $7\mathrm{.}17\mathrm{.}9$

Interest expense on entity borrowings $(43\mathrm{.}2)(42\mathrm{.}1)$

Entities' downward reestimates$/$negative subsidy payments $(22\mathrm{.}8)(37\mathrm{.}3)$

Entities' subsidy expense$/$upward reestimates $47\mathrm{.}735\mathrm{.}8$

Subtotal $-$ adjustments for non$-$cash flow amounts in the budget related to loan financing account activity $(11\mathrm{.}2)(35\mathrm{.}7)$

Total of adjustments for non$-$cash outlays included in the budget $326\mathrm{.}7275\mathrm{.}8$

Cash flow from activities not included in the budget

Cash flow from non$-$budget activities related to federal debt securities

Interest paid $(305\mathrm{.}7)(260\mathrm{.}4)$

Subtotal $-$ cash flow from non$-$budget activities related to federal debt securities $(305\mathrm{.}7)(260\mathrm{.}4)$

Cash flow from non$-$budget activities related to loan financing account activity

Loan disbursements$/$default payments $(214\mathrm{.}3)(194\mathrm{.}9)$

Fees $24\mathrm{.}525\mathrm{.}0$

Principal & interest repayments $125\mathrm{.}9117\mathrm{.}7$

Other collections on defaulted loans receivable and sale of foreclosed property $4\mathrm{.}55\mathrm{.}7$

Other loan financing account activities $-0\mathrm{.}6$

Subtotal $-$ cash flow from non$-$budget activities related to loan financing account activity $(59\mathrm{.}4)(45\mathrm{.}9)$

Cash flow from financing federal debt securities

Borrowings $11,813\mathrm{.}410,080\mathrm{.}1$

Repayments $(10,732\mathrm{.}1)(8,993\mathrm{.}5)$

Discount$/$premium $(60\mathrm{.}4)(54\mathrm{.}7)$

Subtotal $-$ cash flow from financing federal debt securities $1,020\mathrm{.}91,031\mathrm{.}9$

Total cash flow from activities not included in the budget $655\mathrm{.}8725\mathrm{.}6$

Other

Total other $19\mathrm{.}013\mathrm{.}9$

Change in cash and other monetary assets balance $17\mathrm{.}1236\mathrm{.}3$

Beginning cash and other monetary assets balance $507\mathrm{.}5271\mathrm{.}2$

Ending cash and other monetary assets balance $524\mathrm{.}6507\mathrm{.}5$

Property, Plant, and Equipment, Net

As of September $30,2019,$ and $2018$

$($In billions of dollars$)$

Cost Accumulated Depreciation$/$

Amortization Net Cost Accumulated Depreciation$/$

Amortization Net

$20192018$

Buildings, structures, and facilities $775\mathrm{.}8469\mathrm{.}7306\mathrm{.}1728\mathrm{.}4431\mathrm{.}1297\mathrm{.}3$

Furniture, fixtures, and equipment $1,387\mathrm{.}5809\mathrm{.}5578\mathrm{.}01,363\mathrm{.}9782\mathrm{.}7581\mathrm{.}2$

Construction in progress $171\mathrm{.}6$ N$/$A $171\mathrm{.}6159\mathrm{.}5$ N$/$A $159\mathrm{.}5$

Internal use software $51\mathrm{.}532\mathrm{.}119\mathrm{.}449\mathrm{.}430\mathrm{.}818\mathrm{.}6$

Land $21\mathrm{.}7$ N$/$A $21\mathrm{.}721\mathrm{.}5$ N$/$A