1. The City of Access collects its annual property taxes late in its fiscal year. Consequently, cach year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, 2016, the City estimated that it will require OMR 2,500,000 to finance governmental activities for the remainder of the 2016 fiscal year. On that date, it had OMR 790,000 of cash on hand and OMR 830,000 of current liabilities. Collections for the remainder of FY 2016 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at OMR 1,100,000. Required: Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2016. Show work in good form.

1. The City of Access collects its annual property taxes late in its fiscal year. Consequently, cach year it must finance part of its operating budget using tax anticipation notes. The notes are repaid upon collection of property taxes. On April 1, 2016, the City estimated that it will require OMR 2,500,000 to finance governmental activities for the remainder of the 2016 fiscal year. On that date, it had OMR 790,000 of cash on hand and OMR 830,000 of current liabilities. Collections for the remainder of FY 2016 from revenues other than current property taxes and from delinquent property taxes, including interest and penalties, were estimated at OMR 1,100,000. Required: Calculate the estimated amount of tax anticipation financing that will be required for the remainder of FY 2016. Show work in good form.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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