The complexity and uniqueness of the federal government make it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide a better understanding of the federal government. To assist in the financial statement analysis, use Illustration 172 and Illustration 173 along with the following excerpts from the 2019 Financial Report of the United States Government. (Hint: When using revenues or net costs, use the consolidated amounts, which are adjusted for intra-entity activity.)

UNITED STATES GOVERNMENT
Statements of Changes in Cash Balance from Budget and Other Activities
For the Years Ended September 30, 2019, and 2018
(In billions of dollars)
	2019					Reclass 2018
Cash flow from budget activities
Total budget receipts		3,462.2				3,328.7
Total budget outlays		(4,446.6	)			(4,107.7	)
Budget deficit		(984.4	)			(779.0	)
Adjustments for non-cash outlays included in the budget
Non-cash flow amounts in the budget related to federal debt securities
Accrued interest		305.5				268.5
Net amortization		65.7				41.9
Other		(33.3	)			1.1
Subtotal - adjustments for non-cash flow amounts in the budget related to federal debt securities		337.9				311.5
Non-cash flow amounts in the budget related to loan financing account activity
Interest revenue on uninvested funds		7.1				7.9
Interest expense on entity borrowings		(43.2	)			(42.1	)
Entities' downward reestimatesegative subsidy payments		(22.8	)			(37.3	)
Entities' subsidy expense/upward reestimates		47.7				35.8
Subtotal - adjustments for non-cash flow amounts in the budget related to loan financing account activity		(11.2	)			(35.7	)
Total of adjustments for non-cash outlays included in the budget		326.7				275.8
Cash flow from activities not included in the budget
Cash flow from non-budget activities related to federal debt securities
Interest paid		(305.7	)			(260.4	)
Subtotal - cash flow from non-budget activities related to federal debt securities		(305.7	)			(260.4	)
Cash flow from non-budget activities related to loan financing account activity
Loan disbursements/default payments		(214.3	)			(194.9	)
Fees		24.5				25.0
Principal & interest repayments		125.9				117.7
Other collections on defaulted loans receivable and sale of foreclosed property		4.5				5.7
Other loan financing account activities		-				0.6
Subtotal - cash flow from non-budget activities related to loan financing account activity		(59.4	)			(45.9	)
Cash flow from financing federal debt securities
Borrowings		11,813.4				10,080.1
Repayments		(10,732.1	)			(8,993.5	)
Discount/premium		(60.4	)			(54.7	)
Subtotal - cash flow from financing federal debt securities		1,020.9				1,031.9
Total cash flow from activities not included in the budget		655.8				725.6
Other
Total other		19.0				13.9
Change in cash and other monetary assets balance		17.1				236.3
Beginning cash and other monetary assets balance		507.5				271.2
Ending cash and other monetary assets balance		524.6				507.5

Property, Plant, and Equipment, Net
As of September 30, 2019, and 2018
(In billions of dollars)
	Cost				Accumulated Depreciation/ Amortization			Net						Cost	Accumulated Depreciation/ Amortization						Net
	2019													2018
Buildings, structures, and facilities		775.8				469.7				306.1				728.4				431.1				297.3
Furniture, fixtures, and equipment		1,387.5				809.5				578.0				1,363.9				782.7				581.2
Construction in progress		171.6				N/A				171.6				159.5				N/A				159.5
Internal use software		51.5				32.1				19.4				49.4				30.8				18.6
Land		21.7				N/A				21.7				21.5				N/A				21.5
Other property, plant, and equipment		31.7				21.6				10.1				38.0				25.6				12.4
Total property, plant, and equipment		2,439.8				1,332.9				1,106.9				2,360.7				1,270.2				1,090.5

Required

To provide an indication of the government's financial capability, answer the following:

(1) What percentage of total revenues comes from individual income taxes and withholdings? (2) What is the debt service as calculated by the ratio of principal and interest payments on debt held by the public to total revenue?

To provide an indication of the governments financial performance, answer the following:

(1) What is interperiod equity, as calculated by the ratio of revenue to net costs?

To provide an indication of the governments financial position, answer the following:

(1) What is the ratio of nondedicated collections funds to total revenue? (2) What is the quick ratio (use known current liabilities in the calculation)? (3) What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable capital assets?

LLUSTRATION 172 LLUSTRATION 17-3 LLUSTRATION 172 LLUSTRATION 17-3