The following data comes from the 2020 financial statements of the Village of Matthews. Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete. Required: Calculate the following ratios for the Village of Matthews:
a. Number of days' cash on hand - General Fund
b. Quick ratio - General Fund
c. Property tax receivable delinquency rate
d. Budgetary cushion for the General Fund (Assume all assigned fund balance is available.)
e. Debt service burden
f. Excess of revenues and other sources over expenditures and other uses, as a percentage of revenues - Combined, General Fund and Debt Service Fund (Hint: The transfers out and in cancel each other. Therefore, use the revenues for the denominator.)
g. Assess the liquidity of the Village of Matthews, based on the standard that the General Fund's number of days' cash on hand should be no less than 45 (and that 60 is more desirable) and that the quick ratio should be at least 1.

Question

The following data comes from the 2020 financial statements of the Village of Matthews. Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete.  Required: Calculate the following ratios for the Village of Matthews: 
a. Number of days' cash on hand - General Fund
b. Quick ratio - General Fund
c. Property tax receivable delinquency rate
d. Budgetary cushion for the General Fund (Assume all assigned fund balance is available.)
e. Debt service burden
f. Excess of revenues and other sources over expenditures and other uses, as a percentage of revenues - Combined, General Fund and Debt Service Fund (Hint: The transfers out and in cancel each other. Therefore, use the revenues for the denominator.)
g. Assess the liquidity of the Village of Matthews, based on the standard that the General Fund's number of days' cash on hand should be no less than 45 (and that 60 is more desirable) and that the quick ratio should be at least 1.

Quizplus · Accepted Answer

The Answer of The following data comes from the 2020 financial statements of the Village of Matthews. Although presented in summarized format, the balance sheet debits and credits are equal and the operating statement information is complete.  Required: Calculate the following ratios for the Village of Matthews: 
a. Number of days' cash on hand - General Fund
b. Quick ratio - General Fund
c. Property tax receivable delinquency rate
d. Budgetary cushion for the General Fund (Assume all assigned fund balance is available.)
e. Debt service burden
f. Excess of revenues and other sources over expenditures and other uses, as a percentage of revenues - Combined, General Fund and Debt Service Fund (Hint: The transfers out and in cancel each other. Therefore, use the revenues for the denominator.)
g. Assess the liquidity of the Village of Matthews, based on the standard that the General Fund's number of days' cash on hand should be no less than 45 (and that 60 is more desirable) and that the quick ratio should be at least 1.

The Following Data Comes from the 2020 Financial Statements of the Village