Below Is Information on Total Assets for Various Funds of the City

question 7

Essay

Below is information on total assets for various funds of the City of Dublin (all amounts are in thousands of dollars).
$$\begin{array} { | l | r | } \hline { \text { Fund } } & { \text { Assets } } \\\hline \text { General } & \$ 1,300 \\\hline \text { Federal Grants Special Reverue } & 500 \\\hline \text { State Grants Special Reverule } & 200 \\\hline \text { City Hall Capital Projects } & 900 \\\hline \text { Debt Service } & 700 \\\hline \text { Water ard Sewer Enterprise } & 8,000 \\\hline \text { Swirninirig Pool Eriterprise } & 1,000 \\\hline \text { Fleet Maragernent Internal Service } & 10,800 \\\hline \text { Employee Pension Furd } & 6,500 \\\hline\end{array}$$ Requirement: Prepare a schedule computing the threshold for asset amounts that should be used to determine which funds must be reported as major. Identify which funds are major funds.

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Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal loan amount.

Long-Term Bank Loan

A debt financing obligation issued by a bank or financial institution to a company, with a repayment period exceeding one year.

Operating Activities

Business activities directly related to the production, sale, and delivery of a company's products or services, often reflected in the cash flow statement.

Prepaid Expenses

Costs paid for in advance of receiving the benefit of the service or product, recorded as an asset on the balance sheet until the expense is incurred.