Cash flows of a government must be presented in four categories, rather than the three used by businesses.  The following list of cash flows was taken from the statement of cash flows of Grand Junction’s internal service fund (with all amounts expressed in thousands):  Cash on hand at beginning of year                                                                                                                $122  Interest from investments                                                                                                                              45  Wages and salaries paid                                                                                                                                  (3,470)  Purchases of supplies                                                                                                                                      (1,650)  Collections (for services) from other funds                                                                                                 6,380  Interest on long-term debt                                                                                                                             (150)  Repayment of loans to other funds                                                                                                              (880)  Purchase of capital assets                                                                                                                               (900)  Proceeds of revenue bonds                                                                                                                            800  Purchases of investments                                                                                                                               (440)  Proceeds from sale of capital assets                                                                                                             23  Proceeds from sale of investments                                                                                                               33  Loans from other funds                                                                                                                                   600  Recast the list into a statement of cash flows, adding a line for cash on hand at the end of the year.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Cash flows of a government must be presented in four categories, rather than the three used by businesses. 

The following list of cash flows was taken from the statement of cash flows of Grand Junction’s internal service fund (with all amounts expressed in thousands): 

Cash on hand at beginning of year                                                                                                                $122 

Interest from investments                                                                                                                              45 

Wages and salaries paid                                                                                                                                  (3,470) 

Purchases of supplies                                                                                                                                      (1,650) 

Collections (for services) from other funds                                                                                                 6,380 

Interest on long-term debt                                                                                                                             (150) 

Repayment of loans to other funds                                                                                                              (880) 

Purchase of capital assets                                                                                                                               (900) 

Proceeds of revenue bonds                                                                                                                            800 

Purchases of investments                                                                                                                               (440) 

Proceeds from sale of capital assets                                                                                                             23 

Proceeds from sale of investments                                                                                                               33 

Loans from other funds                                                                                                                                   600 

Recast the list into a statement of cash flows, adding a line for cash on hand at the end of the year.

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