The town of Brittainville has two Enterprise Funds—one for its water and wastewater operations and another for its cable television operation. The Water and Wastewater Enterprise Fund issued $11,000,000 of 6%, 15-year refunding bonds at par during the year. It also received a $175,000 federal grant to expand water and wastewater lines to economically depressed residential neighborhoods. The Cable Enterprise Fund made its annual payment of $1,000,000 to the General Fund to subsidize operations. It also was the recipient of a Federal Communications Commission unrestricted grant of $100,000.

How would the receipt of the grants be reported on the statement of cash flows for the Water and Wastewater Enterprise Fund and the Cable Enterprise Fund, respectively?

a. Cash flows from capital and related financing activities for the Water and Wastewater Enterprise Fund and cash flows from noncapital financing activities for the Cable Enterprise Fund.
b, Assuming the Cable Enterprise Fund chose to use the proceeds of its grant for capital needs, both funds would reflect the grant receipt in cash flows from capital and related financing activities.

c. Cash flows from capital and related financing activities for the Water and Wastewater Enterprise Fund and cash flows from operating activities for the Cable Enterprise Fund.

d. Both funds would report the grant receipt as cash flows from operating activities.