15-11. Using Exhibit 13-1, prepare common size ratios for Smith City for its governmental activities.

15-12. Using Exhibit 13-1, calculate current ratios for Smith City for governmental activities, business type

activities, total, and component units.

15-13. Using Exhibit 13-1, calculate the solvency ratio of long-term debt to total net position for the

governmental activities.

Figure 13-1:

Activities Activities Total Component Uni Current assets Cash and cash equivalents $ 8.198,980 $ 7,361,774 $ 15.560,754 $ 212.755 Investments 11,568,438 45,203 11,633,641 5.200,266 Receivables, net 8,989,192 2.526,731 11.509,923 2.829,603 Internal balances 219.638 (219.638) Inventories 225.504 88,672 314.176 58.589 Total current assets $ 29,215,753 9.802,741 $ 30.018,494 $ 8.301,212 Noncurrent assets Restricted cash and cash equivalents $ 6,686.765 $ 6.686,765 Equity interest in joint venture 1,612,279 1,612,279 Capital assets Land and construction-in-progress 19,904.518 4.485,705 24,390,223 525,867 Buildings, equipment, and infrastructure, net of depreciation 99.111,415 101 486,421 200.597,835 25,895,483 Total noncurrent assets $129.514.976 $105.972,126 $235.487,102 $26.421.350 ofal Assets [A] $158,730,729 $115,774,867 $274,505,598 $34,722.562 Deferred Outflows of Resources (B) S S S Current liabilities Accounts payable $ 5,276.980 550,789 $ 5,827,770 $ 1,262,332 Current portion of long-term liabilities 6.465,200 3.096,400 9.563,600 998.647 Total current liabilities $ 11,742.180 $ 3.649,190 $ 15,391,370 $ 2.260,980 Noncurrent liabilities Noncurrent portion of long-term liabilities 58,311,665 52.137,591 110,449.256 18.974.308 Total Liabilities [C] $ 70,053,845 $ 55.786,781 $ 125,840.625 $21,235.285 Deferred Inflows of Resources Prepaid property taxes $ 1,004,919 $ $ 1,004,919 27,238 ofal Deferred Inflows of Resources (DJ $ 1,004,919 S $ 1,004,919 27.238 Not Position let investment in capital assets $ 72,597,970 $ 51,162,002 $123,759,972 $11.134,474 Restricted for: Transportation and new city hall project 7,459,016 7.459,016 Debt service 2,153,780 1.016,397 3.170,178 Low income housing and industrial redevelopment 4,791,940 4,791,940 Other purposes 1,038,371 1,038,371 344,712 Inrestricted (deficit) (289.112) 7.809.687 7.440.575 1.980.853 ofal Net Position [A + B - C - D) $ 87.671.966 $59.988,086 $147.660.052 $13.460.039A B C Problem 15-11 TEMPLATE Primary Government Governmental Common Size Activities Ratios Assets Current assets: 10 Cash and cash equivalents $ 8,198,980 11 Investments 11,588,438 12 Receivables, net 8,983, 192 13 Internal balances 219,638 Inventories 225,504 15 Total current assets $ 29,215,753 16 Noncurrent assets: 17 Restricted cash and cash equivalents $ 8,886,765 18 Equity interest in joint venture 1,612,279 19 Capital assets: 20 Land and construction-in-progress 19,904,518 21 Buildings, equipment, and infrastructure, net of depreciati 99, 111,415 22 Total noncurrent assets $ 129,514,976 23 Total assets [A] $ 158,730,729 24 25 Deferred Outflows of Resources [B] $ 26 27 Liabilities 28 Current liabilities: 29 Accounts payable $ 5,276,980 30 Current portion of long-term liabilities 6.465,200 31 Total current liabilities $ 11,742, 180 32 Noncurrent liabilities: 33 Noncurrent portion of long-term liabilities $ 58,311,665 $4 Total liabilities [C] $ 70,053,845 35 36 Deferred Inflows of Resources 37 Deferred tax revenue $ 1,004,919 38 Total deferred inflows of resources [D] $ 1,004,919 39 40 Net Position 41 Net investment in capital assets $ 72,597,970 42 Restricted for: 43 Transportation and New City Hall Project 7,459,016 44 Debt service 2, 153,780 45 Low Income Housing and Industrial Redevelopment 4,791,940 46 Other purposes 1,038,371 47 Unrestricted (deficit) (369, 112) 48 Total net position [A + B - C - D] $ 87,671,966 49 50 Note: Row and column totals may not equate due to rounding. 51 52 53PROBLEM 15-12 TEMPLATE Current Ratio Governmental Business Type Total Component Total current assets Total current liabilities Current ratio #DIV/O! #DIV/O! #DIV/O! #DIV/O!PROBLEM 15-13 TEMPLATE Solvency Ratio 7 There are two possible interpretations for this exercise. One approach would include B solely the noncurrent liabilities, whereas the other would include the current portion 9 of the long-term debt as well. 10 11 Current portion of long-term obligations 12 Noncurrent portion of long-term obligations 13 Total net position 14 15 16 #DIV/O! 17 18 #DIV/O! 19