In accordance with GASB 34, Basic Financial Statements—and Management’s Discussion and Analysis—

for State and Local Governments, which of the following statements is correct concerning the statement of cash flows prepared for proprietary funds?

a. The statement format is the same as that of a business enterprise’s statement of cash flows.

b. Cash flows from capital financing activities are reported separately from cash flows from noncapital financing activities.

c. Cash flows from operating activities may not be reported using the direct method.

d. Cash received from interest revenue and cash paid for interest expense are both reported as operating activities.