The following cash transactions were among those reported by Genesee County's Wastewater Enterprise Fund for the year:
In the Wastewater Enterprise Fund's statement of cash flows for the year ended December 31, what amount should be reported as cash flows from capital and related financing activities?
A) $5,000,000.
B) $5,300,000.
C) $6,000,000.
D) $6,300,000.

Question

The following cash transactions were among those reported by Genesee County's Wastewater Enterprise Fund for the year: 
In the Wastewater Enterprise Fund's statement of cash flows for the year ended December 31, what amount should be reported as cash flows from capital and related financing activities?
A) $5,000,000. 
B) $5,300,000. 
C) $6,000,000. 
D) $6,300,000.

Quizplus · Accepted Answer

Based on the information provided, the following cash transactions can be classified as capital and related financing activities:
- Issuing $4,000,000 in long-term bonds
- Purchasing $1,000,000 in equipment
- Repaying $1,000,000 in long-term debt

The net cash flows from these transactions would be:
Cash inflow from issuing bonds: $4,000,000
Cash outflow from purchasing equipment: -$1,000,000
Cash outflow from repaying long-term debt: -$1,000,000
Total net cash flows from capital and related financing activities: $2,000,000

Therefore, the correct answer is C) $6,000,000 (which includes the net cash flows from operating, investing, and capital/financing activities).

The Following Cash Transactions Were Among Those Reported by Genesee