Public Budgeting and Finance

Political Science 673: Public Budgeting and Finance (Online)
Assignment #4: The Balance Sheet, Activity Statement,
and Cash Flow Statement

Spring 2021 Andrew L. Morelock

This assignment is due on Sunday, February 21, 2021 by 11:59pm (Central Time). Upload your completed assignment to Canvas. Please submit your work as a Microsoft Word file. 1-4

Answer the following:

1.) What are assets, liabilities, and equity? What is the connection between the balance sheet and the fundamental equation of accounting?
2.) For each of the financial transactions below, indicate how it would result in an increase or decrease in assets or liabilities:

a.) Purchase supplies with cash

b.) Receive tax money that was owed by citizens

c.) Take out a loan

d.) Purchase supplies from a vendor using an account
3.) On the following page is the balance sheet for governmental funds from the city of Collierville, TN’s CAFR for fiscal year 2019.

Based on this information, answer the following:

a.) What is the sum of liabilities for all governmental funds?

b.) What is the sum of equity (fund balance) for the General Fund?

c.) How much “unassigned fund balance” does the city have?

d.) What are the three largest asset accounts within the General Fund?

e.) Is the fundamental equation of accounting in balance for all governmental funds? (Does the amount of assets equal the sum of liabilities, deferred inflows of resources, and fund balance?)

Source: Town of Collierville, Tennessee – Comprehensive Annual Financial Report – Year Ended June 30, 2019.

 
4.) On the following page is the statement of revenues, expenditures, and changes in fund balances for governmental funds from the city of Collierville, TN’s CAFR for fiscal year 2019.

Based on this information, answer the following:

a.) What is the sum of revenues for all governmental funds?

b.) What is the sum of expenditures for the General Fund?

c.) How much money has been budgeted for public safety across all governmental funds?

d.) What are the three largest revenue sources within the General Fund?

e.) How much did fund balance change during FY19 for the General Fund?

Source: Town of Collierville, Tennessee – Comprehensive Annual Financial Report – Year Ended June 30, 2019.