Computation of a government's budgetary cushionFollowing are extracts from a city's General Fund balance sheet and statement of revenues, expenditures, and changes in fund balance.General Fund ExtractsFund Balance:Nonspendable (supplies inventory)$59,76028,600Restricted (intergovernmental grant)110,000Assigned (appropriated for next year's budget)Assigned (for future OPEB expenditures)16,500Unassigned1,292,740Total fund balance$1,507,600Total revenues$31,339,000Transfers in (all recurring)$400,400a) How much (in dollars) is available to help balance future budgets? $b) Calculate the budgetary cushion.Round the percentage to one decimal.%c) Using the rule of thumb suggested in the text, would the budgetary cushion be consideredbe considered reasonable, too high, or too low?

a) balance future budgets : Total Fund Balance - Certain Transfers…

Answered: a) How much (in dollars) is available…

a) How much (in dollars) is available to help balance future budgets? $ b) Calculate the budgetary cushion. Round the percentage to one decimal.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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