Presented below are the computed amounts of ratios for the Village of Riverside example appearing in the chapter.

Required:

1. Using the financial statements provided in Illustrations 2-5 through 2-11, compute ratios for the City of Salem. Assume the population of Salem is 52,000 and the fair value of property totals $970 million.
2. For each ratio, indicate which of the two governments has a stronger financial position. (Round Debt per Capita answer to the nearest whole dollar and other answers to 2 decimal places).

		Village of Riverside	City of Salem	Stronger Ratio
(1)	Financial Position (government-wide, governmental activities)	15%
(2)	Financial Position (General Fund)	11%
(3)	Quick Ratio (government-wide, governmental activities)	2.32
(4)	Leverage (government-wide, primary government)	0.11
(5)	Debt Service Coverage (enterprise funds)	2.7 times
(6)	Debt Service to Total Expenditures (governmental fund-basis)	4%
(7)	Debt per Capital (government-wide, primary government)	$468
(8)	Debt to Assessed Value of Property (government-wide, primary government)	4.68%