Part 11. Preliminary Analysis of city of New York CAFR (5) Find the total assets, total liabilities, net assets, unrestricted net assets, total revenues, total expenses, and change in net assets of the city of New York for 2018. Explain the trends. Part III: Additional Analysis of the CAFR (6) An article by Chaney, 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 Calculation: Financial Position Unrestricted Net Assets Expenses Financial Performance Change in Net Assets Total Net Assets General Revenues + Transfers Expenses Liquidity Cash + Current Investments Receivables Current Liabilities Solvency: Long-term Debt Assets Change in Net Assets Interest Expens Interest Expense Calculate the risk ratios for the city of New York for 2018, and answer a. What conclusions concerning the city's financial position can be drawn from these ratios? b. What conclusions concerning the city's liquidity can be drawn from these ratios? c. What conclusions concerning the city's financial performance can be drawn from these ratios? d. What conclusions concerning the city's solvency can be drawn from these ratios? Part 11. Preliminary Analysis of city of New York CAFR (5) Find the total assets, total liabilities, net assets, unrestricted net assets, total revenues, total expenses, and change in net assets of the city of New York for 2018. Explain the trends. Part III: Additional Analysis of the CAFR (6) An article by Chaney, 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 Calculation: Financial Position Unrestricted Net Assets Expenses Financial Performance Change in Net Assets Total Net Assets General Revenues + Transfers Expenses Liquidity Cash + Current Investments Receivables Current Liabilities Solvency: Long-term Debt Assets Change in Net Assets Interest Expens Interest Expense Calculate the risk ratios for the city of New York for 2018, and answer a. What conclusions concerning the city's financial position can be drawn from these ratios? b. What conclusions concerning the city's liquidity can be drawn from these ratios? c. What conclusions concerning the city's financial performance can be drawn from these ratios? d. What conclusions concerning the city's solvency can be drawn from these ratios
