Ican 2022 Public Sector Accounting And Finance Question 4

Practice mixed question 4 from the 2022 Ican Public Sector Accounting And Finance examination.

Ican 2022 Public Sector Accounting And Finance Mixed
Question 4 ICAN • 2022 • PUBLIC SECTOR ACCOUNTING AND FINANCE • mixed
Case Stimulus
The following information relates to Koki Event Center which is owned and managed by Ogbonge Local Government. Koki Event Centre Statement of financial position as at September 30, 2021 (Extract) Assets 2021 2020 Current assets N N Cash and cash equivalents 2,713,337 3,053,277 Investments 1,324,922 980,248 Current pledges receivables–(net) 2,056,445 1,349,314 Contribution receivables for rent 193,357 45,369 Contract receivables 252,784 99,030 Inventories 239,615 296,017 Trust deposits 86,007 46,725 Prepaid expenses 131,529 32,589 Total current assets 6,997,996 5,902,569 Non-current assets Long-term portion of receivables, less current portion Pledges receivables(net) 1,061,300 1,410,876 Contribution receivables for rent (net) 240,946 - Furniture and equipment (net) 468,397 53,867 Endowment investments 3,444,637 3,683,988 Other investments 401,134 423,764 Total non-current assets 5,616,414 5,572,495 Liabilities Current liabilities Accounts payables 48,975 37,053 Accrued salaries and related costs 418,486 348,719 Total current liabilities 467,461 385,772 Non-current liabilities: Long-term debt 5,255,411 4,549,404 Long-term deferred tax liabilities 3,446,901 2,855,900

Requirements

( a )
Compute the following relevant ratios for the event centre and comment on your results:
( i )
Current ratio
( ii )
Acid test ratio
( iii )
Working capital/Total assets ratio
( iv )
Total debts/Total assets
( v )
Long-term debts/Total assets
( b )
Highlight THREE ways by which analytical review can be conducted.
( c )
Explain TWO ways the performance appraisal of a profit-oriented entity would differ from that of a public-oriented entity.

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About This Question

This is Ican 2022 Public Sector Accounting And Finance Question 4. It is one of the mixed questions from the 2022 Ican Public Sector Accounting And Finance examination.

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