2-11 Accounting and Reporting Principles. For more than 100 years, the financial statements of the Town of Fordville have consisted of a statement of cash re- ceipts and a statement of cash disbursements prepared by the town treasurer for each of its three funds: the General Fund, the Road Tax Fund (special revenue fund), and the Sewer Fund (enterprise fund). As required by state law, the town submits its financial statements to the Office of the State Auditor; however, its financial statements have never been audited by an independent auditor. Because of its growing population (nearing 15,000) and increasing financial complexity, the town has hired Emily Ramirez, who recently obtained her CPA certificate, to supervise all accounting and financial reporting operations. Hav- ing worked two years for a CPA firm in a nearby town, Ms. Ramirez gained limited experience auditing not-for-profit organizations, as well as compiling financial statements for small businesses. Although she has little knowledge of governmental accounting, she is confident that her foundation in business and not-for-profit accounting will enable her to handle the job. Using her experience with not-for-profit organizations, for the year ended December 31, 2017, Ms. Ramirez prepared the following unaudited financial statements for the Town of Fordville. Study these financial statements and answer the questions that follow