Question

The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2017.

VILLAGE OF PARRY—PRINT SHOP FUND
Statement of Revenues, Expenses, and Changes in Net Position
For the Year Ended April 30, 2017
Operating revenues:
Charges for services					$	1,114,000
Operating expenses:
Salaries and benefits	$	504,000
Depreciation		305,400
Supplies used		203,600
Utilities		73,300
Total operating expenses						1,086,300
Income from operations						27,700
Nonoperating income (expenses):
Interest revenue		3,700
Interest expense		(5,800	)
Total nonoperating expenses						(2,100	)
Income before transfers						25,600
Transfers in						196,000
Changes in net position						221,600
Net position—beginning						1,126,000
Net position—ending					$	1,347,600

The Print Shop Fund records also revealed the following:

1.	Contribution from General Fund for working capital needs	$	88,000
2.	Contribution from General Fund for purchase of equipment		108,000
3.	Loan (interest-free) from Water Utility Fund for purchase of equipment		307,000
4.	Purchase of equipment		(506,000	)
5.	Purchase of one-year investments		(56,000	)
6.	Paid off a bank loan outstanding at May 1, 2016		(74,500	)
	The loan was for short-term operating purposes and was the only interest-bearing debt outstanding
7.	Signed a capital lease on April 30, 2017	$	55,300

The following balances were observed in current asset and current liability accounts. ( ) denote credit balances:

	5/1/2016				4/30/2017
Cash	$	227,100			$	405,400
Accrued interest receivable		300				1,000
Due from other funds		40,000				60,000
Supplies		0				0
Accrued salaries and benefits		(29,000	)			(39,000	)
Utility bills payable		(5,800	)			(12,000	)
Accounts payable (for supplies only)		(43,500	)			(35,000	)
Accrued interest payable		(6,200	)			0
Bank loan payable		(74,500	)			0

Prepare a Statement of Cash Flows for the Village of Parry Print Shop Fund for the year ended April 30, 2017. Include the reconciliation of operating income to net cash provided by operating activities. (Amounts to be deducted should be indicated by a minus sign.)

Answer 1

Sollution

Village of Parry- Statement of Cash flows for the year ended 30.04.2017
Particulars	Details	Amount
Cash flow from Operating Activites:
Net Income	$221,600.00
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation Expense	$305,400.00
Interest Expenses	$5,800.00
Interest Revenue	-$3,700.00
Decrease in Accounts payable	-$8,500.00
increase in Due from other funds	-$20,000.00
increase in Accrued interest receivable	-$700.00
increase in Accrued salaries and benefits	$10,000.00
Decrease in Accrued interest payable	-$6,200.00
Decrease in Bank loan payable	-$74,500.00
Increase in Utility bills payable	$6,200.00
Net cash provided by operating activities		$435,400.00
Cash flow from Investing Activites:
Purchase of equipment	-$506,000.00
Purchase of one-year investments	-$56,000.00
Interest Revenue	$3,700.00
Net cash provided by investing activites		-$558,300.00
Cash flow from Financing Activites:
Loan (interest-free) from Water Utility Fund for purchase of equipment	$307,000.00
Interest Expenses	-$5,800.00
Net cash provided by financing activites		$301,200.00
Net Increase in Cash		$178,300.00
Cash at beginning of period		$227,100.00
Cash at end of period		$405,400.00

Village of Parry- Reconciliation of operating income to net cash provided by operating activities
Particulars	Details	Amount
Cash flow from Operating Activites:
Operating Income	$27,700.00
Adjustment to reconcile net income to net cash provided by operating activities:
Transfer in	$196,000.00
Depreciation Expense	$305,400.00
Decrease in Accounts payable	-$8,500.00
increase in Due from other funds	-$20,000.00
increase in Accrued interest receivable	-$700.00
increase in Accrued salaries and benefits	$10,000.00
Decrease in Accrued interest payable	-$6,200.00
Decrease in Bank loan payable	-$74,500.00
Increase in Utility bills payable	$6,200.00
Net cash provided by operating activities		$435,400.00