Assume the following information was derived from the fund financial statements prepared by the city of Tallahassee, Florida for the fiscal year ended September 30, 2019: Assets: City of Tallahassee General Fund Balance Sheet (in thousands) Cash and cash equivalents Due from other governments All other assets Total assets Liabilities: Total current liabilities Fund balance: $2,480 0 11,848 $14,328 $11,287 1,500 0 0 Nonspendable Committed Assigned Unassigned 1,541 Total fund balance. 3,041 Total liabilities and fund balance $14,328 City of Tallahassee General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance (in thousands) Total revenues $109,901 Total expenditures 164,473 Excess of revenues over (under) expenditures -54,572 Other financing sources (uses): Transfers in Transfers out Proceeds from sale of capital assets Total other financing sources (uses) Net change in fund balance Fund balance, October 1, 2019 Fund balance, September 30, 2019 49,597 -21,522 430 28,505 -26,067 29,108 $3,041 a) Calculate the city of Tallahassee's quick ratio. Round to one decimal x b) Using the rule of thumb suggested in the text, would the level of the quick ratio be considered reasonable, too high, or too low? Too low +
Assume the following information was derived from the fund financial statements prepared by the city of Tallahassee, Florida for the fiscal year ended September 30, 2019: Assets: City of Tallahassee General Fund Balance Sheet (in thousands) Cash and cash equivalents Due from other governments All other assets Total assets Liabilities: Total current liabilities Fund balance: $2,480 0 11,848 $14,328 $11,287 1,500 0 0 Nonspendable Committed Assigned Unassigned 1,541 Total fund balance. 3,041 Total liabilities and fund balance $14,328 City of Tallahassee General Fund Statement of Revenues, Expenditures, and Changes in Fund Balance (in thousands) Total revenues $109,901 Total expenditures 164,473 Excess of revenues over (under) expenditures -54,572 Other financing sources (uses): Transfers in Transfers out Proceeds from sale of capital assets Total other financing sources (uses) Net change in fund balance Fund balance, October 1, 2019 Fund balance, September 30, 2019 49,597 -21,522 430 28,505 -26,067 29,108 $3,041 a) Calculate the city of Tallahassee's quick ratio. Round to one decimal x b) Using the rule of thumb suggested in the text, would the level of the quick ratio be considered reasonable, too high, or too low? Too low +
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not provide answer in image format
Transcribed Image Text:Assume the following information was derived from the fund financial statements prepared by the city of
Tallahassee, Florida for the fiscal year ended September 30, 2019:
Assets:
City of Tallahassee
General Fund
Balance Sheet
(in thousands)
Cash and cash equivalents
Due from other governments
All other assets
Total assets
Liabilities:
Total current liabilities
Fund balance:
$2,480
0
11,848
$14,328
$11,287
1,500
0
0
Nonspendable
Committed
Assigned
Unassigned
1,541
Total fund balance.
3,041
Total liabilities and fund balance $14,328
City of Tallahassee
General Fund
Statement of Revenues, Expenditures,
and Changes in Fund Balance
(in thousands)
Total revenues
$109,901
Total expenditures
164,473
Excess of revenues over (under) expenditures -54,572
Other financing sources (uses):
Transfers in
Transfers out
Proceeds from sale of capital assets
Total other financing sources (uses)
Net change in fund balance
Fund balance, October 1, 2019
Fund balance, September 30, 2019
49,597
-21,522
430
28,505
-26,067
29,108
$3,041
a) Calculate the city of Tallahassee's quick ratio.
Round to one decimal
x
b) Using the rule of thumb suggested in the text, would the level of the quick ratio be
considered reasonable, too high, or too low? Too low
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education