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) 96,000 1,420 $170,000 102,000 174,000 15,000 12,000 1,000 32,000 1,620,000 Population Number of emplovees Total operating revenues Property tax levy Total operating expenditures Cash, investments and receivables Current liabilities 92,000 1,050 $120,000 83,000 112,000 27,000 9,000 7,000 21,000 965,000 nassigned general-fund balance General obligation debt Total appraised value of property 1. Compare the financial condition of the two cities based on the following indicators a. Per capita operating expenditures b. Per capita general obligation debt c. Operating surplus (deficit) d. Liquid assets/current liabilities e. Unassigned general-fund balance/total operating revenues f. Per capita number of employees 2. Compare the financial condition of the two cities based on the following additional measures: a. Operating revenue/total appraised value of property b. Property taxes/total appraised value of property c. Per capita total appraised value of property 3. What conclusions can be drawn from the two sets of measures? Comment on the apparent discrepancy between them