Gary Township's water and sewer fund transferred funds to subsidize the ongoing operations of the Townships' General fund. What category would Gary use to classify cash disbursements for the purpose of its water and sewer enterprise fund statement of cash flows?
a) Operating Activities
b) Non-Capital Financing Activities
c) Capital and Related Financing Activities
d) Investing Activities
This solution explains which category Gary should use to classify cash disbursements for the purpose of its water and sewer enterprise fund statement of cash flows.
CASH FLOWS STATEMENTS
The store has no accounts receivable (it accepts only cash or bank cards for payments). At year end, an employee earned $200, which the store had not yet paid. Also, at year-end, the store had not yet paid it most recent utilities bills, which totaled $150.
Cash sales $155,000
Loan proceeds 21,000
Total receipts 176,000
Merchandise purchases ( all sold this year ) $84,000
Rent and lease payments 22,000
Other operating outlays 7,900
Purchase equipment 10,500
Total disbursements 157,400
Increase in Cash Balance $18,600