Strong financial statements are not necessarily indicative of strong financial condition.

The following information was taken from the CAFRs of two cities of approximately the same size in the same state.

	Riverside	Lakeview
	(dollar amounts in thousands)
Population	92,000	96,000
Number of employees	1,050	1,420
Total operating revenues	$120,000	$170,000
Property tax levy	83,000	102,000
Total operating expenditures	112,000	174,000
Cash, investments and receivables	27,000	15,000
Current liabilities	9,000	12,000
Unassigned general-fund balance	7,000	1,000
General obligation debt	21,000	32,000
Total appraised value of property	965,000	1,620,000

Compare the financial condition of the two cities based on the following indicators:

a. Per capita operating expenditures

b. Per capita general obligation debt

c. Operating surplus (deficit)

d. Liquid assets/current liabilities

e. Unassigned general-fund balance/total operating revenues

f. Per capita number of employees

2. Compare the financial condition of the two cities based on the following additional measures:

a. Operating revenue/total appraised value of property

b. Property taxes/total appraised value of property

c. Per capita total appraised value of property

3. What conclusions can be drawn from the two sets of measures? Comment on the apparent discrepancy between them

PLEASE SHOW WORK