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		$1,110,000
Operating expenses:
Salaries and benefits	$500,000
Depreciation	303,000
Supplies used	202,000
Utilities	72.700
Total operating expenses		1,077,700
Income from operations		32,300
Nonoperating income (expenses):
Interest revenue	3,400
Interest expense	(5,500)
Total nonoperating expenses		(2,100)
Income before transfers		30,200
Transfers in		190,000
Changes in net position		220,200
Net position-beginning		1,124,000
Net position-ending		$1,344,200

The Print Shop Fund records also revealed the following:

1. Contribution from General Fund for working capital needs	$86,000
2. Contribution from General Fund for purchase of equipment	104,000
3. Loan (interest-free) from Water Utility Fund for purchase of equipment	304,000
4. Purchase of equipment	(504,000)
5. Purchase of one-year investments	(54,000)
6. Paid off a bank loan outstanding at May 1, 2016	(66,300)
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	$47,900

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

	5/1/2016	4/30/2017
Cash	$196,700	$383,100
Accrued interest receivable	300	800
Due from other funds	40,000	58,000
Supplies	0	0
Accrued salaries and benefits	(26,000)	(36,000)
Utility bills payable	(5,200)	(8,000)
Accounts payable (for supplies only)	(39,000)	(31,000)
Accrued interest payable	(2,800)	0
Bank loan payable	(66,300)	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

Cash Flow Statement :-

Cash Flow from Operating Activities :-
Cash Received from Departments		1092000
Less : Salaries and Benefits Paid	(490000)
Less : Suppliers Paid	(210000)
Less : Utilities Paid	(69900)	(769900)
Net Cash Flow from Operating Activity		322100
Cash Flow from Investing Activity :-
Add : Interet Collection ($3400-$500)	2900
Less : Investments Purchase	(54000)
Net Cash Flow from Investing Activity		(51100)
Cash Flow from Non-Capital Financing Activities :-
Less : Payment of Bank Loan Principal	(66300)
Add : Transfer for Working Capital	86000
Net Cash Flow from Non-Capital Financing Activities		19700
Cash Flow from Capital and Related Financing Activities :-
Add : Transfer for Equipment Purchase	104000
Add : Loan from Water Utility	304000
Less : Purchase of Equipment	(504000)
Less : Interest Paid	(8300)
Net Cash Flow from Capital and Related Financing Activities		(104300)
Net Cash Increase		186400
Add : Beginning Cash Balance		196700
Ending Cash Balance		383100

Reconciliation of Operating Income :-

Particulars	Amount($)	Amount($)
Operating Profit		32300
Adjustment :-
Add : Depreciation	303000
Less : Increase in Accounts Receivable(other funds)	(18000)
Add : Increase in Salaries and Benefits Payable	10000
Less : Decrease in Accounts Payable	(8000)
Add : Increase in Utility Bills Payable	2800	289800
Net Cash Flow from Operating Activity		322100