Inglis City had a beginning cash balance in its enterprise fund of $896,335. Dur
ID: 2471023 • Letter: I
Question
Inglis City had a beginning cash balance in its enterprise fund of $896,335. During 2017, the following transactions occurred: 1. Interest received on investments totaled $42,440. 2. The city acquired additional equity investments totaling $75,820. 3. A grant was received from the state in the amount of $50,500 for summer interns. 4. Receipts from sales of goods or services totaled $2,944,600. 5. Payments for supplies were made in the amount of $1,658,600. 6. Payments to employees for salaries amounted to $484,200. 7. Equipment was sold for $58,000. It had a book value of $57,425. 8. $25,400 was transferred to the General Fund. 9. Other cash expenses for operations were $90,800. 10. Long-term debt payments totaled $534,600.
Prepare a statement of cash flows for the Inglis City enterprise fund. (Negative amounts should be indicated by a minus sign.)
Explanation / Answer
Inglis City Statement of cash flows Operating Activities Amount $ Receipt form sale of goods or services 2,944,600 Payment for supplies -1,658,600 Payment to employee for salaries -484,200 Operating expense paid -90,800 Transfer to general fund -25,400 Net Cash Provided/Used 685,600 Investing Activities Interest received on investments 42,440 Equity investments bought -75,820 Equipment sold 58,000 Net Cash Provided/Used 24,620 Financing Activities Grant received for summer ineterns 50,500 Long term debt payments -534,600 General Fund intake 25,400 Net Cash Provided/Used -458,700 Net Cash Generated/Used 251,520 Add: Beginning Cash balance 896,335 Ending Cash Balance 1,147,855