The financial statements that follow were adapted from those of the University of Arizona. Both the statement of changes in fund balances and the notes to the statements have been omitted. Moreover, the statements show only the combined €˜€˜totals€™€™ columns, whereas the actual statements are multi-columned, indicating the various restrictions placed upon the university€™s resources. Also, a few of the line items have been aggregated, and the dates have been changed.

1. Based on the information included in the financial statements, respond as best you can to the following questions. If you believe the data in the financial statements are inadequate to answer the questions, then indicate what additional information you would like and where you would most likely find it.
a. Were the accomplishments of the university greater or fewer in 2015 than in 2014?
b. Did the university achieve its goals more efficiently in 2015 than in 2014?
c. Are the university€™s physical facilities adequate for the next two years? Ten years?
d. Did the university€™s long-term financial position improve or deteriorate between year-end 2014 and year-end 2015, taking account of the fiscal demands that will be placed upon it in the future?
e. Will the university be able to satisfy its short-term demands for cash?
2. Review the GASB and FASB objectives of financial reporting. Are any of the preceding questions inconsistent with those objectives? Comment on the extent to which conventional financial statements satisfy the GASB and FASB objectives and what additional types of information they will likely have to incorporate in order to satisfy theseobjectives.

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The University of Arizona Balance Sheet, as of June 30 (in millions) 2015 2014 145 $14S Cash and investments Donated land Notes and accounts receivable 52 47 (net of allowances for uncollectibles) Inventories and supplies Physical properties 995 945 $1,203 $1,148 Total assets Liabilities and net assets 16 17 12 10 Accounts payable Accrued payroll Deferred revenue and deposits Funds held for others Capitalized lease obligations Bonds payable 36 33 241 243 S 325 319 $ 878 829 Total liabilities Net assets The University of Arizona Slatement of Revenues. Eipenses, and Changes in Net Assels for Year Ending June 30 (in millions) 2015 2014 g revenues Tuition and fees Grants and contracts Sales and services of educational S 112 S 111 208 194 epartments Sales and services of auxiliary 69 enterprises Others Total operating revenues S 405 383 Operating expenses Education and general S182 S 181 162 15S 26 25 51 52 Instruction Research Public service Academic support Student services Institutional support Auxiliary enterprise expenses Operation and maintenance of 13 1 36 37 76 68 36 34 plant Scholarships and fellowships 46 S 631 S613 $(226) (230) 49 Total educational and Operating income (loss) Nonoperating revenues and eapenses s 245 S 242 State appropriations Federal appropriations Gifts Investment and endowment income Interest on long-term debt 40 39 (23) (14) Total nonoperating revenues and expenses Increase in net assets Net assets-beginning of year Net assets-end of year S 275 S 281 S 49 S 51 829 778 S 878 S 829