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 State of Detroit Michigan (5.8)% 0.40% Median household income $25,764 $49,576 Per capita income $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 %6 Budgetary cushion 203.3 Operating margin 5.9 96 Pension funded ratio: General employees 72 96 Pension funded ratio: Police and Fire 86.6 96 $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 State of Detroit Michigan (5.8)% 0.40% Median household income $25,764 $49,576 Per capita income $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 %6 Budgetary cushion 203.3 Operating margin 5.9 96 Pension funded ratio: General employees 72 96 Pension funded ratio: Police and Fire 86.6 96 $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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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
State of
Detroit Michigan
(5.8)%
0.40%
Median household income
$25,764 $49,576
Per capita income
$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
%6
Budgetary cushion 203.3
Operating margin 5.9
96
Pension funded ratio: General employees 72
96
Pension funded ratio: Police and Fire 86.6
96
$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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