Question 2 Partially correct Mark 6.00 out of 6.67 Flag question One objective of a municipal bankruptcy settlement is to adjust the entity's obligations to the point where there is a reasonable likelihood that it will be financially viable. The city of Detroit, Michigan filed for bankruptcy in mid-2013 and emerged in late 2014. Assume these are excerpts from the Census Bureau's QuickFacts (accessed August 2017) and from Detroit's financial statements for the fiscal year ended June 30, 2016, the first full year after Detroit emerged from bankruptcy. QuickFacts Percentage, population change, 2010 census to 2016 estimate Median household income Per capita income State of Detroit Michigan (5.8)% 0.40% $25,764 $49,576 $15,038 $26,607 Percentage, persons living in poverty 40.30% 15.80% Property taxes levied and collected in year (in millions of dollars) Property taxes levied in 2016 $197.7 Property taxes collected in year of levy $153.8 Detroit General Fund balance sheet data (in millions of dollars) Total assets $985.1 Total liabilities and deferred inflows $484.5 Fund balance: Nonspendable Restricted Committed Assigned Unassigned Total fund balance Detroit General Fund operating statement data (in millions of dollars) Total revenues Total expenditures Excess of revenues over expenditures Other financing sources (uses): Proceeds from bonds and notes Transfers out Principal paid for refunded bonds Net change in fund balance Pension funds (in millions) General Employees Police, Fire Plan net position Total pension liability $2,131.3 $3,194.6 $2,958.4 $3,689.5 Calculate the following ratios: Property tax collection rate 77.8 96 Budgetary cushion 56.3 x96 $5.2 89.3 20.0 243.1 143.0 $500.6 $1,065.1 890.1 175.0 $245.0 (82.1) (275.0) (112.1) $62.9
Question 2 Partially correct Mark 6.00 out of 6.67 Flag question One objective of a municipal bankruptcy settlement is to adjust the entity's obligations to the point where there is a reasonable likelihood that it will be financially viable. The city of Detroit, Michigan filed for bankruptcy in mid-2013 and emerged in late 2014. Assume these are excerpts from the Census Bureau's QuickFacts (accessed August 2017) and from Detroit's financial statements for the fiscal year ended June 30, 2016, the first full year after Detroit emerged from bankruptcy. QuickFacts Percentage, population change, 2010 census to 2016 estimate Median household income Per capita income State of Detroit Michigan (5.8)% 0.40% $25,764 $49,576 $15,038 $26,607 Percentage, persons living in poverty 40.30% 15.80% Property taxes levied and collected in year (in millions of dollars) Property taxes levied in 2016 $197.7 Property taxes collected in year of levy $153.8 Detroit General Fund balance sheet data (in millions of dollars) Total assets $985.1 Total liabilities and deferred inflows $484.5 Fund balance: Nonspendable Restricted Committed Assigned Unassigned Total fund balance Detroit General Fund operating statement data (in millions of dollars) Total revenues Total expenditures Excess of revenues over expenditures Other financing sources (uses): Proceeds from bonds and notes Transfers out Principal paid for refunded bonds Net change in fund balance Pension funds (in millions) General Employees Police, Fire Plan net position Total pension liability $2,131.3 $3,194.6 $2,958.4 $3,689.5 Calculate the following ratios: Property tax collection rate 77.8 96 Budgetary cushion 56.3 x96 $5.2 89.3 20.0 243.1 143.0 $500.6 $1,065.1 890.1 175.0 $245.0 (82.1) (275.0) (112.1) $62.9
Chapter7: Deductions And Losses: Certain Business Expenses And Losses
Section: Chapter Questions
Problem 3RP
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Please help with the Budgetary Cushion? the answer of of 56.3 % or 203.3% is in correct.
Transcribed Image Text:Question 2 Partially correct
Mark 6.00 out of 6.67
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One objective of a municipal bankruptcy settlement is to adjust the entity's obligations to the
point where there is a reasonable likelihood that it will be financially viable.
The city of Detroit, Michigan filed for bankruptcy in mid-2013 and emerged in late 2014.
Assume these are excerpts from the Census Bureau's QuickFacts (accessed August 2017)
and from Detroit's financial statements for the fiscal year ended June 30, 2016, the first
full year after Detroit emerged from bankruptcy.
QuickFacts
Percentage, population change, 2010 census to 2016 estimate
Median household income
Per capita income
State of
Detroit Michigan
(5.8)% 0.40%
$25,764 $49,576
$15,038 $26,607
Percentage, persons living in poverty
40.30%
15.80%
Property taxes levied and collected in year (in millions of dollars)
Property taxes levied in 2016
$197.7
Property taxes collected in year of levy
$153.8
Detroit General Fund balance sheet data (in millions of dollars)
Total assets
$985.1
Total liabilities and deferred inflows
$484.5
Fund balance:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balance
Detroit General Fund operating statement data (in millions of dollars)
Total revenues
Total expenditures
Excess of revenues over expenditures
Other financing sources (uses):
Proceeds from bonds and notes
Transfers out
Principal paid for refunded bonds
Net change in fund balance
Pension funds (in millions) General Employees Police, Fire
Plan net position
Total pension liability
$2,131.3
$3,194.6
$2,958.4
$3,689.5
Calculate the following ratios:
Property tax collection rate
77.8
96
Budgetary cushion 56.3
x96
$5.2
89.3
20.0
243.1
143.0
$500.6
$1,065.1
890.1
175.0
$245.0
(82.1)
(275.0)
(112.1)
$62.9
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