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. CITY OF WRIGHTVILLE Risk Management Internal Service Fund Statement of Cash Flows For the Year Ended June 30, 2020 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, 2019 Cash and cash equivalents, June 30, 2020 $ 905,000 (120,000) (700,000) 250,000 25,000 (15,000) 345,000 (290,000) (170,000) 42,000 (418,000) 300,000 (14,000) 286,000 213,000 118,000 $ 331,000 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.)
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. CITY OF WRIGHTVILLE Risk Management Internal Service Fund Statement of Cash Flows For the Year Ended June 30, 2020 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, 2019 Cash and cash equivalents, June 30, 2020 $ 905,000 (120,000) (700,000) 250,000 25,000 (15,000) 345,000 (290,000) (170,000) 42,000 (418,000) 300,000 (14,000) 286,000 213,000 118,000 $ 331,000 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.)
CITY OF WRIGHTVILLE
RISK MANAGEMENT INTERNAL SERVICE FUND
Statement of Cash Flows
For the Year Ended June 30, 2020
Cash Flows From Operating Activities:
Cash Received from Other Departments
Cash Paid for Claims
Cash Paid for Supplies and Employees
Net Cash Provided by Operating Activities
Cash Flows From Noncapital Financing Activities:
Transfer In from General Fund
Net Cash Provided by Noncapital Financing Activities
Cash Flows From Capital Related Financing Activities:
Proceeds from Long-term Debt
Payments on Long-term Debt Principal
Payments on Interest on Long-term Debt
Cash Paid for Capital Assets
Cash Received on Sale of Capital Assets
Net Cash Provided by Capital Related Financing Activities
Cash Flows From Investing Activities:
Investment Income
Purchase of Investment Securities
Net Cash Used for Investing Activities
…………………………………....www
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Net Increase in Cash and Cash Equivalents
------------
Cash and Cash Equivalents, July 1, 2019
Cash and Cash Equivalents, June 30, 2020
$
$
$
0
0
0
0
0
0
Transcribed Image Text:Exercise 6-9 (Static)
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.
CITY OF WRIGHTVILLE
Risk Management Internal Service Fund
Statement of Cash Flows
For the Year Ended June 30, 2020
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, 2019
Cash and cash equivalents, June 30, 2020
$ 905,000
(120,000)
(700,000)
250,000
25,000
(15,000)
345,000
(290,000)
(170,000)
42,000
(418,000)
300,000
286,000
213,000
118,000
$ 331,000
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.)
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