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

Required:

a.Using the financial statements provided inIllustrations 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.

b.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.)