(Computation of a village's operating margin)

The following information is extracted from a village's governmental funds statement of revenues, expenditures, and changes in fund balances (amounts in thousands):

Required: Compute the village's operating margin

(a) for the General Fund and

(b) for the General, Debt Service, and Library Funds aggregated. (Hint: The transfers out are routine transfers to the other two funds, and should be considered as expenditures in calculating the General Fund's operating margin. Because the transfers in are from the aggregated funds, they should be ignored in calculating the denominator for the aggregated funds operating margin.)

Transcribed Image Text:

General Debt Service Total revenues $8,640 $ 26 Library $ 15 Total expenditures 7,412 842 234 Excess (deficiency) of revenues over expenditures 1,228 (816) (219) Transfers in 850 225 Transfers out (1,075) Net change in fund balances $ 153 $ 34 $ 6