The following information is extracted from the General Fund column of a city’s fund financial statements. Compute the city’s budgetary cushion. Based on your computation and the textbook discussion of the budgetary cushion rule of thumb, assess the city’s ability to withstand a potential near- term economic contraction.

Fund balance: Nonspendable.......... $ 85,392

Unassigned .................423,185

Total fund balance ...............$ 508,577

Revenues: Property taxes ............$ 12,480,500

Sales taxes ..................14,325,700

Other revenues .................1,683,800

Total revenues .................$ 28,490,000