The financial statements that follow were adapted from those of the University of Arizona. Both the statement of changes in fund balances and the notes to the statements have been omitted. Moreover, the statements show only the combined "totals" columns, whereas the actual statements are multi columned, indicating the various restrictions placed on the university's resources. Also, a few of the line items have been aggregated, and the dates have been changed.

1. Based on the information included in the financial statements, respond as best you can to the following questions. If you believe the data in the financial statements are inadequate to answer the questions, then tell what additional information you would like and where you would most likely find it.
a. Were the accomplishments of the university greater or less in 2018 than in 2017?
b. Did the university achieve its goals more efficiently in 2018 than 2017?
c. Are the university's physical facilities adequate for the next two years? Ten years?
d. Did the university's long€term financial position improve or deteriorate between year€end 2017 and year€end 2018, taking account of the fiscal demands that will be placed on it in the future?
e. Will the university be able to satisfy its short€term demands for cash?
2. Review the GASB and FASB objectives of financial reporting. Are any of the preceding questions inconsistent with those objectives? Comment on the extent to which conventional financial statements satisfy the GASB and FASB objectives and what additional types of information they will likely have to incorporate to satisfy these objectives.

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The University of Arizona Balance Sheet, as of June 30 (in millions) 2018 2017 Assets $ 145 $ 145 Cash and investments Donated land Notes and accounts receivable (net of allowances for uncollectibles) Inventories and supplies Physical properties 52 47 995 $1,203 945 $1,148 Total assets Liabilities and net assets $ 16 12 $ 17 10 Accounts payable Accrued payroll Deferred revenue and deposits Funds held for others Capitalized lease obligations Bonds payable Total liabilities Net assets 241 243 878 $ 829 The University of Arizona Statement of Revenues, Expenses, and Changes in Net Assets for Year Ending June 30 (in millions) 2018 2017 Operating revenues Tuition and fees Grants and contracts Sales and services of educational departments Sales and services of auxiliary enterprises Others Total operating revenues $ 112 208 8 69 8 $ 405 $111 194 o0 8 $383