Problem

Using the annual financial report obtained for Exercise 1-1, answer the following question...

Using the annual financial report obtained for Exercise 1-1, answer the following questions:

a.Report the following ratios, using the text material for the Village of Elizabeth as a guide:

(1) Net debt per capita.

(2) Net debt to fair value of property.

(3) Net debt to assets.

(4) Debt service to total expenditures—General and debt service funds.

(5) Net assets/expenses.

(6) Unrestricted net assets/expenses.

(7) Unreserved fund balance/revenues—General Fund.

(8) Governmental revenues per capita.

(9) Interest coverage—revenue bonds.

(10) Operating ratio—enterprise funds.


b.Write a memorandum, based on the ratios you calculated in part (a) of this problem, giving a recommendation as to whether to purchase (1) general obligation or (2) revenue bonds of your governmental unit.

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Solutions For Problems in Chapter 13