Question (3 points) 1. Describe the three components of net assets in the government-wide statement of net position 2. What is the purpose of a classified statement of net position? 3. Describe the difference in reporting capital assets and long-term debt in the governmental funds financial statements and reporting those elements for governmental activities in government-wide financial statements. Exercise #1 (30 points) The following information is taken from Hamilton Township's December 31, 2013, trial balance after all adjustments were made for preparation of the government-wide financial statements. Hamilton Township has governmental activities but no business-type activities. Using the appropriate format, prepare a statement of activities for the Town of Hamilton for the year ended December 31, 2013. Revenues - property taxes $3,250,000 Revenues - sales taxes 2,175,000 State operating aid - police program 410,000 State operating aid - town road maintenance 250,000 State capital aid - town road maintenance 50,000 Fees - sanitation 75,000 Fees - program for youth and seniors 65,000 Fees - parks admissions 85,000 Revenue from disposal of donated property 425,000 General government expenses 625,000 Police program expenses 2,615,000 Road maintenance program expenses 975,000 Sanitation program expenses 1,410,000 Parks and recreation program expenses 525,000 Youth and senior program expenses 325,000 Net position - beginning of year 3,125,000