Question

The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2017.

VILLAGE OF PARRY—PRINT SHOP FUND
Statement of Revenues, Expenses, and Changes in Net Position
For the Year Ended April 30, 2017
Operating revenues:
Charges for services					$	1,105,000
Operating expenses:
Salaries and benefits	$	495,000
Depreciation		300,000
Supplies used		200,000
Utilities		72,000
Total operating expenses						1,067,000
Income from operations						38,000
Nonoperating income (expenses):
Interest revenue		3,000
Interest expense		(5,000	)
Total nonoperating expenses						(2,000	)
Income before transfers						36,000
Transfers in						180,000
Changes in net position						216,000
Net position—beginning						1,120,000
Net position—ending					$	1,336,000

The Print Shop Fund records also revealed the following:

1.	Contribution from General Fund for working capital needs	$	80,000
2.	Contribution from General Fund for purchase of equipment		100,000
3.	Loan (interest-free) from Water Utility Fund for purchase of equipment		300,000
4.	Purchase of equipment		(500,000	)
5.	Purchase of one-year investments		(50,000	)
6.	Paid off a bank loan outstanding at May 1, 2016		(51,000	)
	The loan was for short-term operating purposes and was the only interest-bearing debt outstanding
7.	Signed a capital lease on April 30, 2017	$	36,780

The following balances were observed in current asset and current liability accounts. ( ) denote credit balances:

	5/1/2016				4/30/2017
Cash	$	151,000			$	355,800
Accrued interest receivable		300				500
Due from other funds		40,000				55,000
Supplies		0				0
Accrued salaries and benefits		(20,000	)			(30,000	)
Utility bills payable		(4,000	)			(5,000	)
Accounts payable (for supplies only)		(30,000	)			(25,000	)
Accrued interest payable		(1,000	)			0
Bank loan payable		(51,000	)			0

Prepare a Statement of Cash Flows for the Village of Parry Print Shop Fund for the year ended April 30, 2017. Include the reconciliation of operating income to net cash provided by operating activities

Answer 1

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