Suppose a local general-purpose government has an annual operating budget of $25 million. The current unrestricted General Fund balance is $5 million. Which of the following conclusions is most likely to be reached, given this government units current fund balance levels?

Select the single best answer:

A. This government will have adequate resources to cover several months of expenditures.

B. This government will be unable to meet its financial obligations this year.

C. This government has collected 50% of its revenues for the year.

D. This government is carrying excessive reserves.

E. This government is not carrying debt.