Free Essay

City of Charlottesville

In:

Submitted By letgod2015
Words 721
Pages 3
City of Charlottesville
Student’s Name
Institution

The following table presents the ratio analysis for City of Charlottesville for the financial years 2005 and 2006. There are seven ratios which were computed based on the financial data provided in Table 9.7 and Table 9.8 and the spreadsheet titled “Budget Tools 09 Exercises.” The ratios fall under three major categories which include the measures of liquidity, long-term solvency, and asset management ratios. City of Charlottesville | Financial Analysis | | | FY 2005 | FY 2006 | 1. Current ratio | Current Assets/Current Liabilities | | 4.30 | 5.77 | | 2. Working Capital | Current Assets-Current Liabilities | | 37,683,388.00 | 46,774,060.00 | | 3. Quick ratio | Quick Assets/Current Liabilities | | 4.30 | 5.77 | | 4. Debt-to-asset ratio | Total Liabilities/Total Assets | | 0.55 | 0.57 | | 5. Days payable ratio | All accounts payable*365 days/NPS Expenses | | 99.09 | 74.76 | | 6. Profit Margin Ratio | Surplus/Revenue | | -0.10 | -0.01 | | 7. Common Size Ratio | Line item amount/total amount | | | | | | General Fund | 46,712,426.00 | 68.1% | 59,241,158.00 | 76.6% | | Capital Projects Fund | 10,567,854.00 | 15.4% | 8,407,672.00 | 10.9% | | Social Services Fund | 897,285.00 | 1.3% | 866,126.00 | 1.1% | | Other Government Fund | 10,461,791.00 | 15.2% | 8,820,278.00 | 11.4% | | Total | 68,639,356.00 | 100.0% | 77,335,234.00 | 100.0% |

The liquidity ratios describe financial metrics used to determine whether a firm will be able to meet the short term maturing obligations and financial commitments. In the table above there are two liquidity ratios which include the current ratio and the quick ratio. The current ratio compares the current assets with the current liabilities while the quick ratio compares the quick assets with the current liabilities. In the table above, the quick assets equal the current assets in both fiscal years respectively because City of Charlottesville does not hold inventories. The Current ratio was at 4.3 in 2005 and 5.77 in 2006 and these were equal to the values of the quick ratio. By interpretation, the higher the liquidity ratios the better the financial position of the firm since he ratios indicate that the firm is able to meet the current and maturing obligations (Investopedia, 2015). Additionally, the liquidity improved in 2006 since the ratios were higher in 2006 than in 2005.
Solvency ratios indicate a firm’s ability to meet both the short term and the long term maturing obligations. The ratio also indicate the possibility, or lack thereof, of a firm defaulting on its debt commitments and obligations. In the table above, the solvency ratio is indicated as the debt-to-assets ratio which compares the amount of debt per a unit of assets. The ratio is below 1 in both 2005 and 2006. This indicates that the firm is able to meet its long term debt obligations. However, the ration increased from 0.55 in 2005 to 0.57 in 2006 indicating the position was gradually weakening (Investopedia, 2015).
The asset management ratios indicate how a firm utilizes and manages its assets. These values are presented under the working capital which increased in 2006 over the value indicated in 2005. The days payable ratio indicate the amount of time taken by a firm to pay its payables and lastly the profit margin ratio compares the surplus and the revenues as the common size ratios compare the allocations of the firm’s assets to various funds. Generally, the profit margin improve over the two years though the company still had a deficit in 2006. The DOP reduced to 74 days in 2006 below the 2005 value of 99 days indicating that City of Charlottesville was paying the payables in a shorter duration. These are indicators of an improving financial position. Lastly the common size ratios indicate that the entity allocated more assets to the general fund in 2006 having increased the fund from 68% in 2005 to 76% in 2006 (Investopedia, 2015).

References
Investopedia. (2015). Solvency Ratio Definition | Investopedia. Retrieved from http://www.investopedia.com/terms/s/solvencyratio.asp
Investopedia. (2015). Days Payable Outstanding (DPO) Definition | Investopedia. Retrieved from http://www.investopedia.com/terms/d/dpo.asp
Investopedia. (2015). Liquidity Ratios Definition | Investopedia. Retrieved from http://www.investopedia.com/terms/l/liquidityratios.asp

Similar Documents

Premium Essay

Protest Against Racism

...Charlottesville, Virginia was put in a state of emergency on Saturday as chaos tore through the streets with hundreds of people viciously attacking each other. There are still discussions on what cause the outbreak of violence in that town and what groups were involved but one word that keeps describing this tragic event is “terrorism.” The two main sides of the fighting were between right-wing protestors who were banned together by the ideology of white supremacy who gathered together to promote “Unite the Right” and was expected to be the largest gathering of white nationalist. Groups like neo-Nazis, Ku Klux Klan and movement leaders like Richard Spencer and David Duke were present during this rally. On the other side of the spectrum were the counter protestors who sided more left and identified as “anti-fascist.” Although it is unclear what cause the two sides to attack each other, a rally was scheduled to take...

Words: 601 - Pages: 3

Free Essay

Dart

...[pic] Organizers Institute APPLICATION FORM Instructions: Unless otherwise stated, you may use as much space as you need to answer the following questions. Please include the original questions along with your answers when you submit your completed application. Email your completed application with resume to: careers@thedartcenter.org or fax to: (785) 841-2680. 1. Please type your name, today’s date, and how you originally heard about this position. I found out about the Dart Organizers Institute through Internet search engine on Idealist.org. 2. Were you nominated by a scout? If so, please provide the scout’s name, institution, and contact information (not mandatory). No, a scout did not nominate me. 3. Writing Sample: Please read the following statement and answer the question below using between 300-500 words. Community organizing as practiced within the DART network is the process of building powerful congregation-based community organizations to secure a greater degree of justice through organizing large numbers of people. Most of us do not have enough money to negotiate with powerful people and institutions like banks, mayors, police departments, health care systems, or utility companies. Their control of money or public policy often gives them power over us. However, we do have lots of people in our communities who share a mutual interest in seeking just economic and political systems. With large numbers of organized people, we can build a position...

Words: 2290 - Pages: 10

Free Essay

Dart App

...[pic] Organizers Institute APPLICATION FORM Instructions: Unless otherwise stated, you may use as much space as you need to answer the following questions. Please include the original questions along with your answers when you submit your completed application. Email your completed application with resume to: careers@thedartcenter.org or fax to: (785) 841-2680. 1. Please type your name, today’s date, and how you originally heard about this position. 2. Were you nominated by a scout? If so, please provide the scout’s name, institution, and contact information (not mandatory). No, a scout did not nominate me. 3. Writing Sample: Please read the following statement and answer the question below using between 300-500 words. Community organizing as practiced within the DART network is the process of building powerful congregation-based community organizations to secure a greater degree of justice through organizing large numbers of people. Most of us do not have enough money to negotiate with powerful people and institutions like banks, mayors, police departments, health care systems, or utility companies. Their control of money or public policy often gives them power over us. However, we do have lots of people in our communities who share a mutual interest in seeking just economic and political systems. With large numbers of organized people, we can build a position of power in relationship to these institutions. Why would you like to be a part of building power...

Words: 2275 - Pages: 10

Premium Essay

Distinguishing Features of the Major Court Systems

...Distinguishing Features of the Major Court Systems Katie Van Alstine University of Phoenix Distinguishing Features of the Major Court Systems There are two kinds of courts in the United Stated – state courts and federal courts. Each one possesses their own distinguishing features. We will look at the key players at each level as well as jurisdictional rules, interpretation issues as well as the effect of evolving technology on court proceedings at each level. State courts are established by each individual state and within the state there being local courts that are established by cities, counties, and other municipalities. Federal courts, however, are established under the US Constitution and their main focus is to decide disputes involving the Constitution and the laws that have been passed by Congress. Each level of the court system has key players that include but are not limited to the judge, prosecutor, defense attorney and jury. At the state level, both the judge and the prosecutor are elected officials. These individuals are elected for an eight year term by the majority vote of both houses in the General Assembly. For example in the case of Commonwealth of VA vs. George Huguely V, the presiding judge was Honorable Edward L. Hogshire, Judge and the Commonwealth’s Attorney was Warner D. Chapman. Federal judges such as the Supreme Court justices, court of appeals judges and district court judges are all nominated by the President and confirmed by the...

Words: 1130 - Pages: 5

Premium Essay

Harrisonburg Description

...Nicknamed the ‘friendly city’, Harrisonburg is a vibrant, active community, filled with a little something for everyone. Away from the everyday traffic of the bigger metro areas, enjoy the cityscape with your choice of eating establishments, artist galleries, weekly farmers markets, festivals, museums, shopping, and various historical features. For the more adventurous just a short drive away are numerous mountain trails, popular ski destinations, high adventure parks, an all season water park, beautiful underground caverns, lakes and waterfalls, and wineries (TripAdvisor 2018). Harrisonburg is both pet and bike friendly. Within the city are bike trails, hiking trails, recreational and sports parks, and the beautiful Edith J. Carrier Arboretum,...

Words: 632 - Pages: 3

Premium Essay

How Did Thomas Jefferson Influence The Declaration Of Independence

...Jefferson played an integral role in the creation and signing of the Treaty of Paris, which ended the American Revolution in 1783. Some of his beliefs rubbed off on his protégé, James Madison, who wrote the Constitution. Thomas Jefferson, the third U.S. president and the writer of the Declaration of Independence, was born on in 1743, in Charlottesville, Virginia. Jefferson was born into a very distinguished family of Virginia's planter elite. Jefferson was a proponent of the idea that westward expansion should benefit settlers rather than speculators. He suggested that there would be no indefinite colonies in the expanding American republic. Furthermore, he dictated that all hereditary titles and privileges would be renounced and that the practice...

Words: 660 - Pages: 3

Premium Essay

Scenario: a Social Alliance Team

...disparities has led to most international business blunders." Donaldson, in the “Case of the Floundering Expatriate” is an unfortunate example of someone who has failed to learn about the cultures around him. When people in organizations cross borders, whether geographic, cultural, or social, communication issues are crucial. The cross-cultural communication assignment will allow us to learn more about these “troublesome variables” and share that learning with the class. The briefings will receive a group grade. Scenario: A social alliance team (for-profit, NGO, social entrepreneurs) will soon head to a regional office in a particular country to meet alliance members there and prepare for work on a poverty project. At headquarters in Charlottesville, your group will brief the team on Monday, April 21st, on communication norms in that country’s culture. The briefing may cover some of the following—dress, time, family and business, meetings, conversations, writing and/or e-mail conventions, gift-giving, taboos, and entertaining/entertainment. We’ll select countries in class on Monday, April 14th. Isolated advice won’t be enough. You’ll need to put that advice into a context that relates to the culture. For example, you might include one or more of the following approaches: • explain the history of the country and its overarching social and/or political traditions that affect many of the “variables” in people’s communication • provide examples of...

Words: 684 - Pages: 3

Premium Essay

Homelessness in American

...national poverty rate rose to include 13.2 % of the population. Also, 3.5 million people were forced to sleep in parks, shelters, under bridges or in cars. Hunger and homelessness are increasing epidemics plaguing the United States. Because of the high cost of living, high unemployment rates, and low-wage jobs, countless Americans are forced to choose between food, housing, and other expenses. According to recent studies, money is being devoted to rent and utilities rather than food. 35% of the homeless population is families with children, 23% are U.S. military veterans, 25% are children under the age of 18, 20-25% suffers from mental illness and 30% have experienced domestic violence. 19.3 % of homeless people live in New York City and Los Angeles. New York City has been shown to have the highest number of homeless people in the country. The next biggest is Loss Angeles and then Seattle/King County Washington. As a result of doing nothing for the homeless, more people will become homeless. That means, more people sleeping on the streets, dying from hunger, and possibly an even higher crime rate. Economic factors play a huge role in the issue of homelessness. The number one cause of homelessness is the shortage of affordable housing. With such low incomes and low minimum wage workers, food and shelter can’t be afforded. Over the last twenty-five years, the cost of living has gradually increased but workers’ wages and income haven’t been able to keep up the pace. Since the late 1960s...

Words: 1635 - Pages: 7

Premium Essay

Dentistry Impact

...“What does impact mean to you?” My entrepreneurship professor asked us to define the term in a way that related to our personal goals. A few examples of impact that immediately popped into my head included Embrace Innovation, whose low-cost incubator saved 300,000 babies across 22 countries and Doug Rouch’s Daily Table, which sells fresh, low-cost produce to some of the 49 million Americans struggling with hunger. How did their journeys relate to my aspiring career in dentistry? I recalled shadowing Dr. Starns & Wood who volunteered tirelessly on Tuesday nights, spreading their impact on Charlottesville beyond private practice. Considering social entrepreneurship and dentistry, I defined impact as transforming as many lives possible across multiple...

Words: 926 - Pages: 4

Free Essay

The Neo-Classicism Is an Architectural Moment

...The neo-classicism is an architectural moment that was flourished after the American and the French Revolution. In this period explorers study the past and distant civilizations for an understanding of other cultures; to find new ways how to create mechanical devices to facilitated transportations and commerce. Historian got a closer look to the dates in which important architectural events happened and also became aware of the accomplishment of the various western civilizations. Foremost among these were ancient Greece and Rome, architect will travel to this ruins to study and measure; and after published their findings. It was the century of change, colonial expansion, age of enlightenment, and technological revolution. Neo-classicism was a reaction against the Rococo style, this new language of architecture is evocative and picturesque, a recreation of distant and lost civilizations, framed within the Romantic sensibility that later influence modern architecture and took it to a new direction. The neo-Palladian in England was the first movement to study the revival of classic architecture from the past; its leader was Colen Campbell (1676-1729), a Scottish architect and editor of book “Vitruvius Britannicus”. He designs the Mereworth castle (1723) in kent, like a near replica of the Palladio’s design of Villa Rotonda, but in a larger scale. Campbell attached four Ionic porticos to a simple cube and crowned it with a pyramidal roof and dome. Mereworth also has an incorporated...

Words: 1969 - Pages: 8

Premium Essay

Modernity

...Modernity In the 18th century, the enlightenment began to take fruit in the world. In France, the people began to get upset and in the french revolution they took over their monarchy. Which later they gained an emperor named Napoleon Bonaparte. His thoughts were to conquer all Europe and to make it all Frenchify. In Great Britain, the Industrial Revolution began to take place and to affect in a beneficial way to all Europe and America. Modernity is a time period where the people believed in the secularization, being social and having the most modern things in the science area was the best of the best. The movie Metropolis directed Fritz Lang has a very big image in how modernity was represented. In the film, secularization was a big part. For example, this meant that it was a typical post-medieval and post-traditional and became a historical period. The Secularization of modernism is that religion was emancipated. In the movie religion was something difficult to talk about. The workers were making plans in order to see a woman, Maria, give basic lessons of the bible that was christianity. The workers or slaves seen her as a god because she gave them the hope they needed to keep having strength for their family and themselves. The owner of Metropolis, Joh Fredersen, wanted to keep everything under control which meant he didn't want the workers to feel any type of hope in being free. That meant he had to prohibit any type of religion and beliefs. In order to get rid of this...

Words: 1448 - Pages: 6

Premium Essay

Perspectives on China

...unique location, somewhere where I had not been, yet somewhere where, from a business perspective it would be a valid place to go. How about Japan or South Korea, I pondered. But no, it was China, a place that I explored on multiple occasions, and a place I learned to like. To make things worse, the destinations cities where the most obvious: Shanghai and Beijing. What else is out there, that I have not seen and what else I can learn from visiting it again? My fears were intensified by the assumption that the Darden residency will be sterile, that the group will be sheltered and will travel in a bubble, not being exposed to the true spirit of the country. “Well, I thought, at least we will go to Rio. In May 2012, while visiting Shanghai for the Solar Expo tradeshow I was invited to meet with the GEMBA 12 and the Darden community while the cohort was at their China residency. I was to attend an operations class with Professor Elliott Weiss, meet the students, faculty on staff. Oh, and there was free food involved; I was in! To be honest, the class session was pretty intimidating yet impressive. It was all about some Newsvendor model- a case study where a Charlottesville entrepreneur was selling crazy and ugly shorts with a Surfing Santa on them. The conversation was about a question whether or not the company should outsource the production to Hong Kong or is should keep it in the United States. Not having read the case, I was quite lost during the conversation. “What I am getting...

Words: 2133 - Pages: 9

Free Essay

Dkjhfg

...MADISON COUNTY PUBLIC SCHOOLS      Grade Scale Review Committee  Final Report  January 2010                              Grade Scale Review Committee Background     The MCPS Grade Scale Review Committee was formed in the spring of 2009 at the request of Dr. Brenda  Tanner, Superintendent of Schools. The Committee came together as a response to parental concerns about  the current grade scale in use in MCPS and in light of changes to the grade scales in both Loudoun and Fairfax  Counties. The concern raised was that the grade scale used in MCPS results in unfair comparisons between the  MCPS students and students in other districts who use what could be considered a less stringent scale.      MCPS currently uses a mostly seven‐point scale, whereas districts like Albemarle and Fairfax use a mostly ten‐ point scale. Essentially, the concern was that in some cases students in MCPS could be unfairly compared to a  student in a district that uses a ten‐point scale. For example, if Student A from MCPS and Student B from  Fairfax both earned grades of 92 they would equate differently in terms of GPA (MCPS=B+ and Fairfax=A‐). If  these students were compared for something like college admissions the MCPS student could be viewed as  weaker in terms of GPA even though the percentage grade is the same.      At first glance, the decision to change to a ten‐point grading scale seems simple.  However, the issue is much  more complex than simply comparing scales of surrounding districts and choosing the one that fits Madison...

Words: 4454 - Pages: 18

Premium Essay

Prohibition Era Research Paper

...congress in the year 1917 and declared the manufacturing sale and transportation of alcoholic material in the country as illegal. The ramification of the amendment was approved by over two thirds of the American congress. Prohibition was to initiate one year later. The prohibition law was perceived as an act of social engineering that could spell out various implications to the American public. What was not understood was whether the governments and citizens were ready to deal with the prohibition. Before the prohibition many Americans labelled themselves as wet or dry. [1: Parramore, Thomas, et al Norfolk: The first four centuries (Charlottesville: University Press of...

Words: 4687 - Pages: 19

Premium Essay

The Social-Economic, Political, and Environmental Impacts of Unregulated Population Growth

...Anthony Mitchell Hessler 5/8/12 The Social-Economic, Political, and Environmental Impacts of Unregulated Population Growth Ladies and gentlemen of the Senate Select Committee on Intelligence, mankind is well on its way to answering a seldom asked yet vitally important question pertaining to its sustainability. "How many people can inhabit this planet sustainably?" This is a question that should have been looked into decades ago, yet the answer is still unclear. With no regards to what the answer may be mankind persists in rapidly escalating its population as if the worlds sustainable population capacity is limitless. With the numerous problems that currently plague mankind, overpopulation is perhaps the most threatening and overlooked issue. If current population trends continue there will undoubtedly be terrible repercussion to face in the future. Problems arising from overpopulation will eventually have a grim impact on the socio-economic systems and political systems of the world along with the environment as a whole, the worst of which could lead to the annihilation of the human race. This is why population growth should be a global concern that should be recognized, examined, and dealt with immediately. To understand the impacts of overpopulation one must first understand the concept of overpopulation. Overpopulation is a state wherein the population density of an area has grown large enough to exceed what would be the natural sustainable inhabitant capacity...

Words: 1960 - Pages: 8