The accompnying comined statemnents of revenue, expenditures, and fund balance was drawn from the statemnts on Plant City, Florida, which , of course included a general and other funds that are not shown.Suppose, however that these were the only funds maintained by the city.

1 Prepare a government-wide statement of net posotion and a statemnet of activities. Make the following assumptions:

a)At the year end city had a 4.39 milion in cash and equivalents(its only assests) in its capital projects fund. It had accounts payable and other short-term liabilities in that fund of 0.71 milion. It had neither assets nor liabilities in its debt service fund.

b)At year end the city had 28.28 million in capital assets(construction in progress and other assets)

c)It charged depreaciation of 2.01 million for the year. Accumulated depreaciation at year end was 10.4 million.

d)Interest paid for the year was equal to interest expense. You need to not reconcile beginning and ending balances of net position, and the statemnet of activities can be in the traditional format.(revenue and expense shown in rows rather then columns)

2 Comment on the main differences in the revenues, expenditures/expenses, and other financing sources/ uses as reportedon the fund statemnents and on the government-wide statements. Would you expect that over the life of the governmentthe cumulative changes in fund balance(net position) as reported on the two types of statemnets would be different? Explain.

Plant City Statemnet of revenues, expenditures and charges in fund balance

REVENUES AND OTHER FINANCING SOURCES

Intergovernmental revenues 0.30

Fees and misc. revenues 2.47

Total revenue 0.30 2.47

EXPENDITURES

Retirement of principal 0.16

interest 0.14

Construction Cost 2.17

Total Expenditures 0.30 2.17

Excess of revenues and other financing sources

over expenditures 0.00 0.30

Fund balance, beg of year 0.00 3.38

Fund balance, end of year 0.00 3.68