Author Question: (Analyzing a governmental entity's financial statements) The following data comes from the 2013 ... (Read 297 times)

sam.t96

  • Hero Member
  • *****
  • Posts: 570
(Analyzing a governmental entity's financial statements)
 
  The following data comes from the 2013 financial statements of the Village of Matthews.
 
  Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete.
 
  General Fund - Balance Sheet Elements
   Cash 1,200,000
   Short-term investments 405,000
   Property taxes receivable - delinquent 282,000
   Due from other funds 58,000
   Accounts payable and other accrued liabilities 900,000
   Assigned fund balance 90,000
   Unassigned fund balance 935,000
 
  General Fund - Operating Statement Elements
   Revenues, including property taxes of 6,125,000 8,350,000
   Expenditures (total) 7,510,000
   Transfer to Debt Service Fund 400,000
   Excess of revenues and other sources over expenditures
   and other uses 440,000
 
  Debt Service Fund - Balance Sheet Elements
   Cash and cash equivalents 230,000
   Restricted fund balance 230,000
 
  Debt Service Fund - Operating Statement Elements
   Debt service expenditures:
   Principal 100,000
   Interest 200,000
   Operating transfer from General Fund 400,000
   Excess of revenues and other sources over
   expenditures and other uses 100,000
 
  Required: Calculate the following ratios for the Village of Matthews:
   a. Current ratio - General Fund
   b. Quick ratio - General Fund
   c. Property tax receivable delinquency rate
   d. Budgetary cushion for the General Fund (Assume all assigned fund balance is available.)
   e. Debt service burden
   f. Excess of revenues and other sources over expenditures and other uses, as a percentage of revenues - Combined, General Fund and Debt Service Fund (Hint: The transfers out and in cancel each other. Therefore, use the revenues for the denominator.)

Question 2

Which of the following statements is false?
 a. Most computerized accounting systems use principles from manual systems.
  b. Subsidiary ledgers and special journals are only useful when a business doesn't have a large number ofsimilar transactions.
  c. Even small companies use computerized accounting systems.
  d. Large companies often integrate their accounting system with their automated business systems.



SAUXC

  • Sr. Member
  • ****
  • Posts: 318
Answer to Question 1

(Problem 30)
a. Current ratio = Current assets / Current liabilities
= (1,200,000 + 405,000 + 282,000 + 58,000) / 900,000
= 1,945,000 / 900,000 = 2.16

b. Quick ratio = (Cash + investments) / Current liabilities
= (1,200,000 + 405,000) / 900,000 = 1,605,000 / 900,000
= 1.78

c. Property tax receivable delinquency rate= Delinquent taxes / Tax revenues = 282,000 / 6,125,000 = 4.60

d. Available fund balance / Revenues = 1,025,000 / 8,350,000 = 12.28

e. Debt service burden = Debt service expenditures / Revenues = 300,000 / 8,350,000 = 3.59

f. Excess of revenues and other sources over expenditures and other uses / Revenues = 440,000 (GF) + 100,000 (DSF) / 8,350,000 = 540,000 / 8,350,000 = 6.47

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

For a complete list of videos, visit our video library