P. 11-7 Strong financial statements are not necessarily indicative of strong financial condition. The following information was taken from the CAFRs of two cities of approximately the same size in the same state. Riverside Lakeview (dollar amounts in thousands) Population 92,000 96,000 Number of employees 1,050 1,420 Total operating revenues $120,000 $170,000 Property tax levy 83,000 102,000 Total operating expenditures 112,000 174,000 Cash, investments and receivables 27,000 15,000 Current liabilities 9,000 12,000 Unassigned general-fund balance 7,000 1,000 General obligation debt 21,000 32,000 Total appraised value of property 965,000 1,620,000 Compare the financial condition of the two cities based on the following indicators: Per capita operating expenditures Per capita general obligation debt Operating surplus (deficit) Liquid assets/current liabilities Unassigned general-fund balance/total operating revenues Per capita number of employees Compare the financial condition of the two cities based on the following additional measures: Operating revenue/total appraised value of property Property taxes/total appraised value of property Per capita total appraised value of property What conclusions can be drawn from the two sets of measures? Comment on the apparent discrepancy between them.