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The complexity and uniqueness of the federal government make it difficult to conduct a meaningful analysis of its financial condition. However, conducting a financial statement analysis does provide a better understanding of the federal government. To assist in the financial statement analysis, use lllustration 172 and Illustration 173 along with the following excerpts from the 2019 Financial Repor of the United States Government (Hint: When using revenues or net costs, use the consolidated amounts, which are adjusted for intra entity activity.) interest expense on enticy borrowings Entities' downward reestimatesegative subsidy payments Entities' subsidy expense/upward reestimates Subtotal - adjustments for non-cash flow amounts in the budget related to loan financing account activity Total of adjustments for non-cash outlays included in the budget Cash flow from activities not included in the budget Cash flow from non-budget activities related to federal debt securities Interest paid Subtotal - cash flow from non-budget activities related to federal debt securities Cash flow from non-budget activities related to loan financing account activity Loan disbursements/default payaents Fees Principal \& interest repayments other collections on defaulted loans receivable and sale of foreclosed property other loan financing account activities Subtotal - cash flow from non-budget activities related to loan financing account activity Cash flow from financing federal debt securities Borrowings Repayments Discount/prenium Subtotal - cash flow from financing federal debt securities Total cash flow from activities not included in the budget other Total other Change in cash and other monetary assets balance Beginning cash and other monetary assets balance Required a. To provide an indication of the government's financial capability, answer the following: (1) What percentage of total revenues comes from individual income taxes and withholdings? (2) What is the debt service as calculated by the ratio of prifcipal and interest payments on debt held by the public to total revenue b. To provide an indication of the government's financial performance, answer the following: (1) What is interperiod equity, as calculated by the ratio of revenue to net costs? c. To provide an indication of the government's financial position, answer the following: (1) What is the ratio of nondedicated collections funds to total revenue? (2) What is the quick ratio (use known current liabilities in the calculation)? (3) What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable capital assets? Complete this question by entering your answers in the tabs below. a. To provide an indication of the government's financial capability, answer the following: (1) What percentoge of total revenues comes from individual income taxes and withholdings? (2) What is the debt service as calculated by the ratio of principal and interest payments on debt held by the public to total revenue? (Do not round intermediate calculations. Round percentage answers to 1 decimal place.) Complete this question by entering your answers in the tabs below. b. To provide an indication of the government's financial performance, answer the following: (1) What is interperiod equity, as calculated by the ratio of revenue to net costs? (Do not round intermediate calculations. Round percentage answer to 1 decimal place.) Complete this question by entering your answers in the tabs below. c. To provide an indication of the govirnment's financial position, answer the following: (1) What is the ratio of nondedicated collections funds to total revenue? (2) What is the quick ratio (use known current liabilities in the calculation)? (3) What is the capital asset condition as calculated by the ratio of accumulated depreciation to the cost of depreciable capital assets? (Do not round intermediate calculations. Round final answers to 2 decimal places.)

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