New York State

Please use year 2019 Comprehensive Annual Financial Reports (CAFRs) of YOUR STATE to answer the following case questions. You may download the CAFRs via their websites or googling the key words CAFR & name of YOUR STATE". Part II : Additional Analysis of the CAFR (1) An article by Chancy, Mead and Schermann (2002) summarizes six government-wide ratios to measure fiscal distress and related financial risk factors of municipalities. One ratio provides an overall measure of financial position for the government. Two ratios provide measures of financial performance. A fourth ratio provides a measure of liquidity. Two final ratios provide measures of solvency. These ratios in comparison to the ratios measured for similar governments, combined with other useful information, provide a starting point for evaluating the overall financial condition of a governmental entity. The definitions and measurements of these ratios and factors are listed in the following table. Financial Ratios Measures of: Financial Position Financial Performance Calculation: Unrestricted Net Assets Expenses Change in Net Assets Total Net Assets General Revenues + Transfers Expenses Cash + Current Investments + Receivables Current Liabilities Long-term Debt Assets Change in Net Assets + Interest Expense Interest Expense Liquidity Solvency: Calculate the risk ratios for YOUR STATE for 2019, and answer a. What conclusions concerning the sate's financial position can be drawn from these ratios? b. What conclusions concerning the state's liquidity can be drawn from these ratios? What conclusions concerning the state's financial performance can be drawn from these ratios? d. What conclusions concerning the state's solvency can be drawn from these ratios? c. Please use year 2019 Comprehensive Annual Financial Reports (CAFRs) of YOUR STATE to answer the following case questions. You may download the CAFRs via their websites or googling the key words CAFR & name of YOUR STATE". Part II : Additional Analysis of the CAFR (1) An article by Chancy, Mead and Schermann (2002) summarizes six government-wide ratios to measure fiscal distress and related financial risk factors of municipalities. One ratio provides an overall measure of financial position for the government. Two ratios provide measures of financial performance. A fourth ratio provides a measure of liquidity. Two final ratios provide measures of solvency. These ratios in comparison to the ratios measured for similar governments, combined with other useful information, provide a starting point for evaluating the overall financial condition of a governmental entity. The definitions and measurements of these ratios and factors are listed in the following table. Financial Ratios Measures of: Financial Position Financial Performance Calculation: Unrestricted Net Assets Expenses Change in Net Assets Total Net Assets General Revenues + Transfers Expenses Cash + Current Investments + Receivables Current Liabilities Long-term Debt Assets Change in Net Assets + Interest Expense Interest Expense Liquidity Solvency: Calculate the risk ratios for YOUR STATE for 2019, and answer a. What conclusions concerning the sate's financial position can be drawn from these ratios? b. What conclusions concerning the state's liquidity can be drawn from these ratios? What conclusions concerning the state's financial performance can be drawn from these ratios? d. What conclusions concerning the state's solvency can be drawn from these ratios? c