On January 1, Fonk City approved the following general fund resources for the new fiscal period:
Property taxes $ 5,000,000
Licenses and permits 400,000
Intergovernmental revenues 150,000
Transfers in from other funds 350,000
What amount should Fonk record as estimated revenues for the new fiscal year?
a.
$5,550,000
b.
$5,900,000
c.
$5,750,000
d.
$5,400,000
Explanation
Choice “a” is correct. Revenues include property taxes, licenses and intergovernmental revenues. Transfers would be considered estimated other financing sources. Estimated revenues are:
Property taxes $ 5,000,000
Licenses and permits 400,000
Intergovernmental revenues 150,000
Total estimated revenues $ 5,550,000
I selected choice d. $5400,000 because I understand that intergovernmental revenues and transfers in from other funds are estimated other financing sources.
Can someone please correct me how I am wrong and give the explanation for the correct answer.
Thanks