Question

The following is a Statement of Cash Flows for the risk management internal service fund of the City of Wrightville. An inexperienced accountant prepared the statement using the FASB format rather than the format required by GASB. All long-term debt was issued to purchase capital assets. The transfer from the General Fund was to establish the internal service fund and provide the initial working capital necessary for operations. $ 930,000 (125,000) (729,100) 260,500 26,000 (15,500) 346,900 CITY OF WRIGHTVILLE Risk Management Internal Service Fund Statement of Cash Flows For the Year Ended June 30, 2017 Cash flows from operating activities: Cash received from other departments Cash paid for suppliers and employees Cash paid on insurance claims Transfer from General Fund Investment income received Interest paid on long-term debt Cash flows from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment Purchase of investments Sale of property, plant, and equipment Cash flows from investing activities Cash flows from financing activities: Proceeds from issuance of long-term debt Payments on long-term debt Cash flows from financing activities Net increase in cash and cash equivalents Cash and cash equivalents, July 1, 2016 Cash and cash equivalents, June 30, 2017 (297,000) (207,000) 43,400 (460,600) 308,400 (14,400) 294,000 180, 300 121,200 $ 301,500 Prepare a statement of cash flows using the appropriate format as required by GASB. You do not need to prepare the reconciliation of operating income to cash flow from operations. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Answer OPI 2017 appropria cash floco! Using uu wa Wale Page No o Statement of cashflocos using appropriate tomat on June 30, 2017 Perbicular Amount | Amount cash themes focom operating activities cash received from other departments $230,000 cash paid on insurance claims (6729100) cash paid for supplies & employees ($ 125000) Het cash provided by operating activities 1$ 75900 cash flows from the con capital financing activities Tarober in from general fund $260,500 Neto cash provided by non capital financing $260,500 -.activities cash flowers the time eritel gelated financing activities Proceeds from long bom det $308400 Payments on long term debt principal ($ 14400) Payments on interest long berm diebt. (415500)

um - Page No Cash paid for capital asset C# 297000) Cash received on sale of capital assets & 43,400 Net cash used for capital orelated financial $24900 activities casts flowers licem investing activities Investment income $ 26000 Purchase of investment Securities ($ 207000) Klet cash provided by investing activities $ 181000) Net increase in cash $ 180300 Cash on hand July, 2016 $ 121,000 Cash on hand. June 30, 2014 $ 301500

Answer 2