The following list of cash flows was taken from the New Orleans City airport fun
ID: 2520197 • Letter: T
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
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
Explanation / Answer
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 1570Related Questions
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