Computation of a government's budgetary cushion Following are extracts from a city's General Fund balance sheet and statement of revenues, expenditures, and changes in fund balance. General Fund Extracts Fund Balance: Nonspendable (supplies inventory) Restricted (intergovernmental grant) Assigned (appropriated for next year's budget) Assigned (for future OPEB expenditures) Unassigned Total fund balance Total revenues Transfers in (all recurring) $108,654 52,000 200,000 30,000 1,292,740 $1,683,394 $56,980,000 $728,000 a) How much (in dollars) is available to help balance future budgets? $ 0 b) Calculate the budgetary cushion. Round the percentage to one decimal. 0 % c) Using the rule of thumb suggested in the text, would the budgetary cushion be considered be considered reasonable, too high, or too low?
Computation of a government's budgetary cushion Following are extracts from a city's General Fund balance sheet and statement of revenues, expenditures, and changes in fund balance. General Fund Extracts Fund Balance: Nonspendable (supplies inventory) Restricted (intergovernmental grant) Assigned (appropriated for next year's budget) Assigned (for future OPEB expenditures) Unassigned Total fund balance Total revenues Transfers in (all recurring) $108,654 52,000 200,000 30,000 1,292,740 $1,683,394 $56,980,000 $728,000 a) How much (in dollars) is available to help balance future budgets? $ 0 b) Calculate the budgetary cushion. Round the percentage to one decimal. 0 % c) Using the rule of thumb suggested in the text, would the budgetary cushion be considered be considered reasonable, too high, or too low?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Computation of a government's budgetary cushion
Following are extracts from a city's General Fund balance sheet and statement of revenues, expenditures, and changes in fund balance.
General Fund Extracts
Fund Balance:
Nonspendable (supplies inventory)
Restricted (intergovernmental grant)
Assigned (appropriated for next year's budget)
Assigned (for future OPEB expenditures)
Unassigned
Total fund balance
Total revenues
Transfers in (all recurring)
$108,654
52,000
200,000
30,000
1,292,740
$1,683,394
$56,980,000
$728,000
a) How much (in dollars) is available to help balance future budgets? $ 0
b) Calculate the budgetary cushion.
Round the percentage to one decimal. 0
%
c) Using the rule of thumb suggested in the text, would the budgetary cushion be considered
be considered reasonable, too high, or too low?
+
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