(This question is in governmental accounting subject. )

Background: Jerry Judge, the new accountant for Altuve City, has prepared a preliminary statement of cash flows for the city's enterprise fund for the fiscal year just ended.Being new to governmental accounting, Judge prepared it using the FASB rules for preparing such a statement.Upon realizing his error, Judge has asked for your help.

Please provide a memo to Jerry explaining thesixkey differences between the FASB statement of cash flows and the required statement of cash flows under GASB rules.

GASB SCEV FASB SCF : SIX DIFFERENCES GASB SCE FASB SCE (1) Requires direct method (1 ) Requires either direct for operating activities section or indirect method ( 2 ) Two financing activities (2) One financing activities. sections : capital financing section. of noncapital firencing ( 3 ) Displays interest paid on ( 3) Displays interest paid on debt as firencing debt in operating activities . (4 )/ Shows interest/ dividends (4) Shows interest/ dividends received as investing received in operating activities activities (5 ) Displays cash purchases+ (5) Displays cast purchases + sales of capital assets sales of capital assets as las capital financing investing activities ( 6 )ISCF Reconciliation ( 6 ) SCF Reconciliation starts with operating starts with net income income