The Four Cash Flow Categories Required in an Enterprise Fund's

question 40

Essay

The four cash flow categories required in an Enterprise Fund's Statement of Cash Flows are listed below and assigned a letter code.
A)Cash flows from operating activities
B)Cash flows from noncapital financing activities
C)Cash flows from capital and related financing activities
D)Cash flows from investing activities
Required:
Use the correct letter code to indicate where each of the following ten items associated with an Enterprise Fund should be reported in the Statement of Cash Flows.
1.An enterprise fund's fixed asset was sold for cash.
2.Cash paid to suppliers for goods.
3.Paid principal,$100,000,and interest,$5,000,on a mortgage.
4.Cash proceeds from sale of investments,$65,000.
5.Cash paid for new equipment,$18,000.
6.Cash received from the general fund; restricted to cover part of the cost of plant expansion,$900,000.
7.Cash received from another fund as a 6-month loan for the sole purpose of financing purchase of equipment,$47,000.
8.Cash proceeds from issuing bonds for an enterprise fund's construction project.
9.Cash paid to employees for salaries.
10.Cash received from interest earned on investments.

• A)Cash flows from operating activities
• B)Cash flows from noncapital financing activities
• C)Cash flows from capital and related financing activities
• D)Cash flows from investing activities
• Required:
• Use the correct letter code to indicate where each of the following ten items associated with an Enterprise Fund should be reported in the Statement of Cash Flows.
• 1.An enterprise fund's fixed asset was sold for cash.
• 2.Cash paid to suppliers for goods.
• 3.Paid principal,$100,000,and interest,$5,000,on a mortgage.
• 4.Cash proceeds from sale of investments,$65,000.
• 5.Cash paid for new equipment,$18,000.
• 6.Cash received from the general fund; restricted to cover part of the cost of plant expansion,$900,000.
• 7.Cash received from another fund as a 6-month loan for the sole purpose of financing purchase of equipment,$47,000.
• 8.Cash proceeds from issuing bonds for an enterprise fund's construction project.
• 9.Cash paid to employees for salaries.
• 10.Cash received from interest earned on investments.

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Definitions:

Formal Learning

Structured learning that occurs within an educational institution or training program, typically leading to certification.

Multilevel Systems Model

A framework for understanding how different levels (individual, group, organizational) interact and influence one another within a system.

Societal Learning

Learning that occurs at a community or societal level, involving shared knowledge, practices, and values that are passed among members.

Task Interdependence

The degree to which tasks within a team or organization rely on each other to be successfully completed.