Following is an excerpt from a city’s General Fund statement of revenues, expenditures, and changes in fund balance. Calculate the numerator of the city’s operating margin. State the factors you considered in making your calculation.
Revenues .................... $ 670,000
Expenditures .................... 640,000
Excess of revenues over expenditures ........... 30,000
Other financing sources (uses):
Transfer in from closed Special Revenue Fund ...... 50,000
Proceeds from sale of capital assets ............ 40,000
Net change in fund balance ............... $ 120,000