An incomplete operating statement conversion worksheet is provided below[in Excel file Ch14P-1]for the City of Walden Creek for FY 20X7.

Additional information:

Except for infrastructure, which is charged to the function that maintains it, depreciation is allocated as follows:

2. All capital outlay expenditures were capitalized except for $30,000 in asset purchases for the General Government that did not meet the capitalization threshold.

3. Deferred Revenues were $7,000 at the end of FY 20X6, $10,000 at the end of FY 20X7.

4. Interest Payable at the end of FY 20X6 was $4,000. At the end of FY 20X7 it was $3,000.

5. The vehicles that were sold had a net book value of $4,500.

6. Long-term compensated absences for the government increased $8,000 during the year. This increase was allocated to the functions at the same rate as depreciation.