3. [25 points] Evaluate the financial status of a local government by using the following financial information on pages 4 through 6. a. Explain the concepts of assets, liabilities, and fund balance (also called net assets or net position) b. Explain the mechanism of how fund balance (net asset) increases or decreases. c. Please carefully examine the financial document (pages 4 ~ 6) of a local government below. Evaluate the financial status of the government (Use "Total" column in Primary Government): First, calculate and evaluate the debt-paying ability ratio, acid test ratio, debt-to-equity ratio, and unreserved (unrestricted) fund balance. Your calculation must show what numbers you used to calculate the ratios. Then, provide your overall evaluation by using the recommended standards.