© D.L. Crumbley
You have the following data for a city in the southwest. Calculate the quick ratio. Is this ratio favorable or unfavorable?
Current Liabilities$28 million
Investments (current)$36 million
Accounts Receivables$12 million
Due from other funds$2.5 million
You have the following information about a mid-west city. Calculate the ratios of fund balance to revenues and determine if they are favorable or unfavorable.
General Fund$62 million
Unreserved Fund$54 million
General Fund Revenues$401 million
You determine the following data about a local government in the southeast. Determine the ratios of unreserved fund balance and reserved fund balance to total revenues. Are these ratios favorable?
Revenues from Property Taxes$36 million
Unreserved Fund Balance$5 million
Reserved Fund Balance$3.5 million
Assume the following facts about a local government. Determine the Tax Limit Exhausted and the Debt Limit Exhausted ratios.
Tax Limit$11 million
Debt Limit$13 million
Tax Levy$8.5 million
Total Debt subject to Limit$9 million
Assume that Debt Service Expenditures is $16.2 million and Total Revenues is $70.1 million. Calculate the Debt Service/total revenue ratio. Is the ratio favorable?