The Following Information Is Available for the Preparation of the Government-Wide

question 64

Essay

The following information is available for the preparation of the government-wide financial statements of the City of Tall Oaks as of June 30, 2009:
$$\begin{array} { l r } \text { Accounts payable, business-type activities } & \$ 210,000 \\\hline \text { Accounts payable, governmental activities } & 400,000 \\\hline \text { Capital assets, net, business-type activities } & 10,400,000 \\\hline \text { Capital assets, net, governmental activities } & 12,900,000 \\\hline \text { Cash and cash equivalents, business-type } & 900,000 \\\text { activities } & \\\text { Cash and cash equivalents, governmental } & 1,600,000 \\\text { activities } & \\\hline \text { Inventories, business-type activities } & 600,000 \\\hline \text { Net assets, restricted for debt service, } & 400,000 \\\text { business-type activities } & \\\text { Net assets, restricted for debt service, } & 650,000 \\\text { governmental activities } & 3,700,000 \\\text { Noncurrent liabilities, business-type } & \\\text { activities } & 5,640,000 \\\hline \text { Noncurrent liabilities, governmental } & \\\text { activities } & 1,330,000 \\\text { Receivables, business-type activities } & 500,000\end{array}$$ Assume all long-term liabilities were incurred in the acquisition of capital assets.
Required: From the information given above, prepare, in good form, a Statement of Net Assets for the City of Tall Oaks as of June 30, 2009. Include the unrestricted net assets, which is to be computed from the information presented above. Include a total column. Tall Oaks has no component units.

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Definitions:

Industry Expansion

The growth in production, workforce, or market share within a specific sector of the economy.

Constant-cost Industry

An industry in which the costs of production or the prices of inputs do not change as the industry expands or contracts.

Entry or Exit

The process of a firm beginning operations in a market (entry) or leaving a market (exit), influenced by factors like profitability and barriers to entry.

Industry Expanding

A phase where the sector's businesses are growing in terms of production, workforce size, or market reach.