Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help - thank you You have been asked to perform financial condition ratio analyses for two communities, Thriftyville and Myopica, based on data culled

Please help - thank you

image text in transcribed
You have been asked to perform financial condition ratio analyses for two communities, Thriftyville and Myopica, based on data culled from each of their CAFRs. Both towns have a similar median family income of $50,000. Total long-term debt outstanding per capita is $1,500 for Thriftyville and $5,000 for Myopica. Thriftyville has operating revenues of $105,000,000 and Myopica has operating revenues of $90,000,000. Revenue from own sources for Thriftyville is $60,000,000 while it is 85,000,000 for Myopica. You can attribute the difference between total operating revenues and own source revenues as the intergovernmental revenue component for each community. Thriftyville has planned operating expenditures of $102,000,000 while Myopica has $100,000,000 in planned operating expenditures. Cash and short-term investments on hand for each community is $15,000,000. Current liabilities for Thriftyville are 8,000,000 while it is $14,000,000 for Myopica. For each community, please calculate a financial ratio (if necessary) for assessing 1) fiscal effort, 2) operating deficits, 3) stability of revenues, 4) ability to meet short-term commitments, and 5) ability to meet long-term commitments. Based on these calculations, explain who is doing financially better on each measure

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting General Journal

Authors: Claudia Gilbertson

11th Edition

1337623121, 9781337623124

More Books

Students also viewed these Accounting questions

Question

Outline Abelards position on the roles of faith and reason.

Answered: 1 week ago

Question

Pollution

Answered: 1 week ago

Question

The fear of making a fool of oneself

Answered: 1 week ago