The following cash transactions were among those reported by Genesee County's Wastewater Enterprise Fund for the year: Proceeds from sale of revenue bonds for construction $5,000,000
Interest income 300,000
Capital contributed by developers 1,000,000
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?

Question

Quizplus · Accepted Answer

Cash flows from capital and related financing activities include proceeds from the sale of revenue bonds for construction ($5,000,000) and capital contributed by developers ($1,000,000), as well as any other financing activities such as borrowings or repayments of debt. Interest income is not a cash flow from capital and related financing activities. Therefore, the total cash flows from capital and related financing activities should be $6,000,000 ($5,000,000 + $1,000,000).

The Following Cash Transactions Were Among Those Reported by Genesee