The numbered items on the left consist of a variety of transactions that occurred in the water utility enterprise fund of Jeffersen City for the year ended June 30, 20X9. Items A, B, C, and D on the right consist of the four categories of cash flows that are reported on the statement of cash flows for proprietary funds. Item \(\mathrm{E}\) is for transactions that are not reported on the statement of cash flows. Assume the direct method is used for disclosing cash flows from operating activities. For each transaction. select the letter that represents where that transaction should be disclosed on the statement of cash flows. or state that the item would not be reported on the statement of cash flows.

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Transactions 1. Receiver $5.000.000 from revenue bonds to be used for construction of water treatment plant. 2. Paid $500,000 of salaries to employees of the water utility. 3. Received $1,000,000 state grant restricted for Categories of Disclosure A. Operating activities B. Noncapital financing activities C. Capital and related financing activities D. Investing activities E. Not reported on the statement of cash flows construction of water treatment plant. 4. Collected $2.500.000 of accounts receivable from households for use of city water. 5. Depreciation expense for the year amounted to $300,000. 6. Received 575.000 state grant restricted to the maintenance of fixed assets. 7. Paid $250,000 of interest on the revenue bonds issued in number 1. 8. Borrowed $125.000 from a local bank on revenue anticipation notes payable. 9. Paid $5,000 of interest on the notes payable in number 8. 10. Spent $1,200.000 of the revenue bonds for construction of the water treatment plant. 11. Paid $5.000 fire insurance premium on June 30. 20X9. for next year's insurance coverage. 12. Uncollected accounts receivable amounted to $135,000 on June 31.20X9. 13. Acquired $250.000 of state bonds as an investment of idle funds. 14. Received $7,500 of interest on the state bonds in number 13. 15. Received a $375.000 contribution from the City's general fund to be used for the construction of water treatment plant.