Case Study 5 – Assessment of Financial Conditions Case Study 5 requires that

Case Study 5 – Assessment of Financial Conditions

Case Study 5 requires that you utilize the data found in the city of Riverside Comprehensive Annual Financial Report (CAFR) for 2020. You should pay particular attention to the information from the Management Discussion and Analysis section (pages 4 – 6), the Statement of Net Position (page 21), the Statement of Revenues, Expenditures, and Changes in Fund Balances (page 25).

What are the three (3) most important pieces of information from the Management Discussion & Analysis (MD&A) section regarding Riverside’s fiscal condition?

Calculate the following ratios:

Current Assets / Current Liabilities (Statement of Net Position)
Cash / Total Assets (Statement of Net Position)
Total Cash % change
Total debt service (Statement of Net Position) / Total Revenues (Statement of revenues, expenditures and changes in fund balances)
Long-term liabilities (non-current) (Statement of Net Position) / Total assets
Long-term liabilities (non-current) (Statement of Net Position) / population

What do the ratios tell us about Riverside?

What other ratios do you believe are important to assess the financial condition of Riverside?

In addition to answering the above questions, upload a voice-over PowerPoint that summarizes the results of your case study.