Use the letter beside the appropriate cash flow statement classification to indicate the section of the cash flow statement in which each of the following transactions of an Internal Service Fund should be reported.
a. Cash flows from operating activities.
b. Cash flows from noncapital financing activities.
c. Cash flows from capital and related financing activities.
d. Cash flows from investing activities.
e. Either b or c, additional information required. Explain.
f. None of the above. Explain.
1. Cash purchase of equipment
2. Transfer received from the General Fund
3. Payment of accounts payable created by the acquisition of supplies on credit
4. A cash contribution by the General Fund for the purpose of financing half the cost of new equipment
5. Payment of capital lease payments
6. Cash received from the collection of billings to other departments
7. Cash paid for investments in bonds of other governments
8. Transfer to another fund
9. Cash received from borrowing on a short-term basis for operations
10. Interest paid on the short-term borrowing