A headline in The New York Times on August 16, 2017 read: Hartford (Connecticut), With Finances in Disarray, Veers Toward Bankruptcy. The article said, among other things: . . . Hartford, which has one of the highest property tax rates in the state . . . still cannot raise enough money to pay for basic government operations. Here are some economic, demographic, and financial data taken Census Bureau QuickFacts (accessed August, 2017) and from Hartfords June 30, 2016 CAFR. (The financial statements, expressed in thousands of dollars, have been condensed.)

Economic, demographic data
	Hartford	Connecticut	United States
Population, 2010 census	124,775	3,574,097	308,745,538
Population, 2016 estimate	123,243	3,576,452	323,127,513
Percent, high school grad. or higher	70.6%	89.9%	86.7%
Median household income	$30,630	$70,331	$53,889
Per capita income	$17,311	$38,803	$28,930
Individuals living below poverty	33.4%	10.5%	13.5%
2016 unemployment rate (source: CAFR)	10.3%	5.5%	5.3%

CITY OF HARTFORD General Fund Balance Sheet June 30, 2016
Assets:
Cash and cash equivalents	$ 60,524
Receivables (mostly taxes)	84,332
Total assets	$144,856
Liabilities	$ 55,007
Deferred inflows of resources	75,718
Fund balance:
Assigned	8,663
Unassigned	5,468
Total fund balance	14,131
Total liabilities, deferred inflows of resources, and fund balance	$144,856

CITY OF HARTFORD General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance For the Year Ended June 30, 2016
Total revenues	$565,580
Total expenditures	565,754
Excess (deficiency) of revenues over expenditures	(174)
Other financing sources (uses):
Transfers in	5,438
Transfers out	(13,059)
Total other financing sources (uses)	(7,621)
Net change in fund balance	(7,795)
Fund balance, beginning of year	21,926
Fund balance, end of year	$14,131

Other comments

a. The Debt Service Fund had a beginning fund balance of $97,174 thousand. The Debt Service Fund statement of revenues, expenditures, and changes in fund balances for fiscal year 2016 shows $72,734 thousand of debt service expenditures, zero revenues, and $9,302 thousand of transfers in. It also shows significant inflows from refunding existing debt and the issuance of new debt. The same general pattern occurred in fiscal year 2015. Hence, it is reasonable to assume that most of the years debt service expenditures was financed, not by tax revenues, but rather by rolling over existing debt issuing new debt or drawing down the fund balance.

b. Hartfords outstanding general obligation debt increased from $512.9 million at the beginning of fiscal year 2016 to $683.2 million at the end of the year. The CAFR reports that the assessed value of taxable property was $3,623,072,000 and the actual value of taxable property was $6,664,914,000. You can calculate Hartfords personal income by multiplying the population by the per capita income.

Required:

Use the foregoing data to compute appropriate financial statement analysis ratios.

Instructions:

• Round answers for quick ratio and days' on hand ratio to one decimal place.
• Round remaining ratios (presented as percentages) to one decimal place (ex: 0.2345 = 23.5%).
• Do not round computations until your final answer.
• Use negative signs with your answers when appropriate.

Ratio	Answer
Quick ratio	Answer
Days' cash on hand	Answer
Budgetary cushion	Answer
Operating margin	Answer
Debt burden (using full value of taxable property)	Answer
Debt burden (using personal income base)	Answer