Question

The following list of cash flows was taken from the New Orleans City airport fund’s statement of cash flows. All amounts are in thousands. Prepare the Statement of Cash Flows.  

Cash on hand, beginning of year	$120
Wages and salaries paid	915
Interest received from investments	25
Operating lease receipts	2650
Purchases of supplies	1,025
Collections (for services) from other funds of the city	290
Interest paid on long-term capital debt	155
Payments on capital lease	1000
Proceeds of revenue bonds to acquire capital assets	2,100
Purchases of investments	725
Proceeds from sale of capital assets	880
Proceeds from sales of investments	55
Purchase of capital assets Capital lease payments	1,725
Operating grants received	500
Proceeds from line of credit (used for operations)	375
Capital contribution from airline	125
Interest paid on line of credit	5

Answer 1

Statement of cash flow

Cashflow from operating activity
Wages and salaried paid	(915)
Purchase of supplies	(1025)
Operating grants received	500
Operating lease receipts	2650
Payments on capital lease	(1000)
Net cash provided by operating activity		210
Cashflow from Investing activity
Purchase of investment	(725)
Proceeds from sales of investments	55
Proceeds from sale of capital assets	880
Interest received from investments	25
Net cash used in investing activity		235
Cashflow from financing activity
Proceeds from line of credit (used for operations)	375
Interest paid on line of credit	(5)
Proceeds of revenue bonds to acquire capital assets	2100
Collections (for services) from other funds of the city	290
Interest paid on long-term capital debt	(155)
Capital contribution from airline	125
Purchase of capital assets Capital lease payments	(1725)
Net cash used in financing activity		1005
Net increase in cash and cash equivalents		1450
Cash on hand at beginning of the year		120
Cash on hand at end of the year		1570