Town of Paris
                                         &nbs p; Combined Balance Sheet
               Special Capital     Debt      Permanent
General Revenue Projects Services Endowment                                          &nbs p;                                          &nbs p;                     
Fund      Fund       Fund      Fund        Fund      Totals
Assets:
Cash
    $ 38    $ 20        $ 35        $340    $ 10          $ 443
Investments.
     105      60        480       136        960        1,741
Due from
Other Funds     
        -     120        46           39        -             205
Total Assets
$143    $200      $561     $515      $970     $2,389
Liabilities and
Fund Balances:
Accounts
Payable          
    $ 8        -              -            -          -           $ 8
Due to
Other Funds    
    205        -             -           -           -            205
Fund Balances
   (70)     $200        $561       $515   $970   2,176
Total Liabilities and
Fund Balances
   $143    $200       $561       $515    $970 $2,389

The combined governmental fund balance sheet of
the town of Paris is presented above.

Per schedules included in the notes to the financial
statements, the town had $1,450 of capital
assets (net of accumulated depreciation) and $1,315
in long-term liabilities associated with the capital
assets.
1. Recast the balance sheets in the form of a single
consolidated, full accrual balance sheet.
2. Put yourself in the place of an analyst. The
town mayor presents you with the consolidated
balance sheet. He asserts that the town's
financial position is excellent, as measured
by the exceedingly 'healthy'? fund balance.
Based on your having seen the combined
balance sheet that shows the individual
fund types, why might you be skeptical of his
claim?
3. Comment on why a consolidated balance sheet
is no substitute for a combined balance sheet
that reports on major funds.