(reporting reconciliation between fund and government-wide financial statements)

return to your solution to exercise e10-28, regarding oliver city’s capital assets. using the journal

entries you prepared for that exercise, prepare the wording and the numbers you would use in describing

the reconciliation of the amounts reported in the two funds’ financial statements to the two government-

wide financial statements.

ex 10-28

oliver city reported capital assets of $4,300,000 and accumulated depreciation of $2,000,000 in the

governmental activities column of its government-wide statement of net position for the year ended

december 31, 2018. the total governmental funds column in oliver’s calendar year 2019 statement

of revenues, expenditures, and changes in fund balances showed that oliver’s capital outlay expendi-

tures were $340,000. oliver city’s director of finance estimated that total depreciation for 2019 was

$200,000. based on this information, prepare journal entries to adjust oliver’s 2019 fund financial

statements so government-wide statements can be prepared

If the government is required to balance the budget and the economy falls into a recession, which of the actions is a feasible policy response? cut taxes to encourage consumer spending invest in infrastructure increase government spending to stimulate the economy cut spending equal to the reduction in tax revenue what is a likely consequence of this policy? unemployment falls due to the economic stimulus. the negative consequences of the recession are magnified. consumer spending increases due to their ability to keep more of their after-tax income. there is hyperinflation due to an increase in aggregate demand.

Sheldon has the following year-end account balances: accounts receivable, $5,000; supplies, $12,000; equipment, $18,000; accounts payable, $17,000; stockholders’ equity, $43,000. the cash account balance was not available at year-end. given the account balances listed, the balance in the cash account should be?

Examine the following book-value balance sheet for university products inc. the preferred stock currently sells for $30 per share and pays a dividend of $3 a share. the common stock sells for $16 per share and has a beta of 0.9. there are 2 million common shares outstanding. the market risk premium is 9%, the risk-free rate is 5%, and the firm’s tax rate is 40%. book-value balance sheet (figures in $ millions) assets liabilities and net worth cash and short-term securities $ 2.0 bonds, coupon = 6%, paid annually (maturity = 10 years, current yield to maturity = 8%) $ 5.0 accounts receivable 3.0 preferred stock (par value $15 per share) 3.0 inventories 7.0 common stock (par value $0.20) 0.4 plant and equipment 21.0 additional paid-in stockholders’ equity 13.6 retained earnings 11.0 total $ 33.0 total $ 33.0 a. what is the market debt-to-value ratio of the firm? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. what is university’s wacc? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)