The following information was taken from the CAFRs of two cities of approximately the same size in the same state.

1. Compare the financial condition of the two cities based on the following indicators:

a. Per capita operating expenditures

b. Per capita general obligation debt

c. Operating surplus (deficit)

d. Liquid assets/current liabilities

e. Unassigned general-fund balance/total operating revenues

f. Per capita number of employees

2. Compare the financial condition of the two cities based on the following additional measures:

a. Operating revenue/total appraised value of property

b. Property taxes/total appraised value of property

c. Per capita total appraised value of property

3. What conclusions can be drawn from the two sets of measures? Comment on the apparent discrepancy betweenthem.