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Internal Service Fund, Statement of Cash Flows. Prepare a statement of cash flows for the internal service fund for the city of Pearman from the following information:
Cash on hand at the beginning of the year $185
Interest on investments 244
Wages and salaries paid (3,120)
Purchases of supplies (1,250)
Collections (for services) from other funds 6,000
Interest paid on long-term debt (215)
Repayment of loans from other funds (715)
Purchase of capital assets (920)
Proceeds of revenue bonds 920
Purchase of investments (475)
Proceeds from sale of capital assets 36
Proceeds from sale of investments 55
Loans from other funds 575
Expert Answer
| Statement of cash flow | Amount | Amount | |
| A. | Cash flow from operating activity | ||
| Collections from other funds | $ 6,000.00 | ||
| Purchase of supplies | $ (1,250.00) | ||
| Wages and salaries paid | $ (3,120.00) | $(4,370.00) | |
| Cash flow from operating activity | $ 1,630.00 | ||
| B. | Cash flow from Investing Activity | ||
| Interest on investment | $ 244.00 | ||
| Purchase of capital assets | $ (920.00) | ||
| Purchase of investment | $ (475.00) | ||
| Proceeds from sale of capital assets | $ 36.00 | ||
| Proceeds from sale of investments | $ 55.00 | $(1,060.00) | |
| Cash flow from Investing Activity | $(1,060.00) | ||
| C. | Cash flow from financing activity | ||
| Interest paid on long term debt | $ (215.00) | ||
| Repayment of loans from other funds | $ (715.00) | ||
| Proceeds of revenue bonds | $ 920.00 | ||
| loan from other funds | $ 575.00 | $ 565.00 | |
| Cash flow from financing activity | $ 565.00 | ||
| Cash on hand at the beginning of the year | $ 185.00 | ||
| Net Cash inflow (A+B+C) | $ 1,135.00 | ||
| Cash on hand at the end of the year | $ 1,320.00 | ||
