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Wednesday, February 2, 2011

6-10 Village of Parry Statement of Cash Flows

Solution is available here for U$3.00
6–10. The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2009. VILLAGE OF PARRY—PRINT SHOP FUND Statement of Revenues, Expenses, and Changes in Net Assets For the Year Ended April 30, 2009 Operating revenues: Charges for services $1,000,000 Operating expenses: Salaries and benefits $500,000 Depreciation 200,000 Supplies used 200,000 Utilities 70,000 970,000 Income from operations 30,000 Nonoperating income (expenses): Interest revenue 30,000 Interest expense (50,000) (20,000) Net income before transfers 10,000 Transfers in 180,000 Changes in net assets 190,000 Net assets—beginning 1,120,000 Net assets—ending $1,310,000



The Print Shop Fund records also revealed the following: 1. Contribution from Water Utility Fund for working capital needs $ 80,000 2. Contribution from General Fund for purchase of equipment 100,000 3. Loan from Water Utility Fund for purchase of equipment 300,000 4. Purchase of equipment (450,000) 5. Purchase of one-year investments (100,000) 6. Paid off a bank loan outstanding at May 1, 2008 $50,000 Paid interest $1,000 The loan was for short-term operating purposes. 7. Signed a capital lease on April 30, 2009 $42,180 The following balances were observed in current asset and current liability accounts. ( ) denote credit balances: 5/1/08 4/30/09 Cash $151,000 $233,000 Accrued interest receivable 5,000 10,000 Due from other funds 40,000 50,000 Accrued salaries and benefits (20,000) (30,000) Utility bills payable (4,000) (5,000) Accounts payable (30,000) (25,000) Accrued interest payable (5,000) (7,000) Prepare a Statement of Cash Flows for the Village of Parry Print Shop Fund for the Year Ended April 30, 2009. Include the reconciliation of operating income to net cash provided by operating activities.

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