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 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. 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.)

Village of Riverside City of Salem Stronger Ratio (1) Financial Position (government-wide, governmental activities) 10 % % (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) 2.5 times times (6) Debt Service to Total Expenditures (governmental fund-basis) 4 % % (7) Debt per Capita (government-wide, primary government) $468 (8) Debt to Assessed Value of Property (government-wide, primary government) 4.68 % %