2 points look References The following is a Statement of Cash Flows for the risk management internal service fund of the City of Wrightville. An inexperienced accountant prepared the statement using the FASB format rather than the format required by GASB. All long-term debt was issued to purchase capital assets. The transfer from the General Fund was to establish the internal service fund and provide the initial working capital necessary for operations. CITY OF WRIGHTVILLE Risk Management Internal Service Fund Statement of Cash Flows For the Year Ended June 30, 2020 Cash flows from operating activities: Cash received from other departments Cash paid for suppliers and employees Cash paid on insurance claims Transfer from General Fund Investment income received $ 946,000 (141,000) (712,000) 279,400 27,800 (17,100) 382,300 Interest paid on long-term debt cash flows from operating activities Cash flows from investing activities: Acquisition of property, plant, and equipment Purchase of investments (312,000) (223,000) Sale of property, plant, and equipment Cash flows from investing activities Cash flows from financing activities: Proceeds from issuance of long-term debt Payments on long-term debt cash flows from financing activities Net increase in cash and cash equivalents rach and rack utusant 310 45,200 (489,800) 320,600 (15,200) 305,400 197,900 136 000