Question

The following information (presented in thousands) is available for the Cumberland County Utility Enterprise Fund during the current year: The beginning balance for cash and cash equivalents was $87,810 and for restricted cash was $12,954. The utility collected $2,500 in customer deposits throughout the year. Deposits of $1,100 were returned, and accounts of $200 were written off. Cash paid to vendors totaled $20,233, while cash paid to employees was $35,260. The utility repaid revenue bonds restricted for capital acquisitions in the amount of $18,680 and issued new debt of $16,620 to acquire new equipment. Equipment costing $8,650 was purchased for cash during the year. Cash receipts came from customers, $112,685; interest on investments, $985; a transfer from the General Fund, $5,000; and interest on customer deposits, $625. (Assume that interest on customer deposits is not restricted.) Required Prepare a statement of cash flows for the Cumberland County Utility Enterprise Fund. (Ignore the reconciliation of operating income to net cash provided by operating activities because insufficient information is provided to complete the reconciliation.) (Negative amounts should be indicated by a minus sign.)

CUMBERLAND COUNTY
Enterprise Fund
Statement of Cash Flows
For the Current Year Ended
Cash Flows from Operating Activities:
Cash Received From Customers
Cash Provided From Customer Deposits
Cash Paid To:
Employees
Vendors
		0
Net Cash Provided by Operations			$0
Cash Flows from Noncapital Financing Activities:
Transfer From General Fund
Net Cash Provided by Noncapital Financing Activites
Cash Flows from Capital Financing Activities:
Purchase of New Equipment
Debt Payment
Proceeds from Issuance of Dept
Net Cash Used by Capital Financing Activities			0
Cash Flows from Investing Activities:
Interest Received
Net Cash Provided by Investing Activities			0
Net Increase in Cash and Cash Equivalents			0
Cash and Cash Equivalents, Beginning
Cash and Cash Equivalents, Ending			$0

Answer 1

CUMBERLAND COUNTY
Enterprise Fund
Statement of Cash Flows
For the Current Year Ended
Cash Flows from Operating Activities:
Cash Received From Customers		112,685
Cash Provided From Customer Deposits		775
Cash Paid To:
Employees		-35,260
Vendors		-20,233
Net Cash Provided by Operations			$57967
Cash Flows from Noncapital Financing Activities:
Transfer From General Fund		5,000
Net Cash Provided by Noncapital Financing Activites			$5,000
Cash Flows from Capital Financing Activities:
Purchase of New Equipment		-8,650
Debt Payment		-18,680
Proceeds from Issuance of Dept		16,620
Net Cash Used by Capital Financing Activities			$-10,710
Cash Flows from Investing Activities:
Interest Received		985
Net Cash Provided by Investing Activities			$985
Net Increase in Cash and Cash Equivalents			53242
Cash and Cash Equivalents, Beginning			100764
Cash and Cash Equivalents, Ending			$ 154006

Pl note interest paid on customer deposits has been reduced from the amount received from customer deposits as no specific head is appropriate for it.

Pl note following is the calculation for amount received from customer deposit:

Amount collected 2500

amount returned 1100

interest to customer 625

Net 775