Discuss how the state should report the $200 million inflow in its General Fund statement of revenues, expenditures, and changes in fund balances. Rank the alternative reporting methods in order of best method as:

(a) revenues, using the caption Other;

(b) other financing sources, using the caption Proceeds from sale and leaseback;

(c) a special item; and

(d) an extraordinary item.

Give reasons for your ranking