LO 4 32. (Computation of a government's operating margin) Following is an excerpt from a city's General Fund statement of revenues, expenditures, and changes in fund balance. Discuss the factors you would consider when calculating the numerator of the city's operating margin. $670,000 640,000 30,000 Revenues Expenditures. Excess of revenues over expenditures. Other financing sources (uses): Transfer in from closed Special Revenue Fund Proceeds from sale of capital assets Net change in fund balance. 50,000 40,000 $120,000 LO 4 -33. (Computation of a government's budgetary cushion) Following are extracts from a city's General Fund balance sheet and statement of revenues, expendi- tures, and changes in fund balance. BE Fund Balance: Nonspendablo (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). 54,327 26,000 100,000 15,000 323,185 $ 518,512 $28,490,000 $364,000 Required: Compute the budgetary cushion. Then, assess the level of the budgetary cushion based on the rules of thumb discussed in the text