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Following is the June 30, 2019, statement of net position for the City of Bay Lake Water Utility Fund. CITY OP BAY LAKE Water Utility

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Following is the June 30, 2019, statement of net position for the City of Bay Lake Water Utility Fund. CITY OP BAY LAKE Water Utility Fund Statement of Pund Net Position June 30, 2019 Assets Current assets Cash and investments Accounts receivable (net of $13,367 provision for uncollectible accounts) Accrued utility revenue Due from General Fund I Interest receivable Total current assets Restricted assets. Cash Capital assets Land $1,780,945 Buildings (net of $3,420,000 in accumulated depreciation) 5,214,407 Machinery and equipment (net of $5,129,928 in accumulated depreciation) 8,488,395 Total capital assets (net) Total Assets Liabilities Current liabilities: Accounts payable 532,047 Interest payable 131.772 Current portion of long-term debt 400,000 Total current liabilities Liabilities payable from restricted assets Customer dobosit $ 1,775,019 306,869 500,000 29,311 82,000 2,693, 199 9,193 15,483, 747 18,186,139 1,063,819 9.193 532,047 131,772 400,000 1,063,819 Liabilities Current liabilities: Accounts payable Interest payable Current portion of long-term debt Total current liabilities Liabilities payable from restricted assets: Customer deposits Long-term liabilities: Revenue bond payable Total Liabilities Net Position Net investment in capital assets Unrestricted 9,193 11,600,000 12,673,012 I 3,483, 747 2,029,380 $ 5,513,127 Following is the information of the Water Utility Fund for fiscal year 2020. 1. The amount in the Accrued Utility Revenue account was reversed. 2. Billings to customers for water usage during fiscal year 2020 totaled $2,982,557 $193.866 of the total was billed to the General Fund. 3. Cash in the amount of $260,000 was received. The cash was for interest earned on investments and $82,000 in accrued interest. 4. Expenses accrued for the period were management and administration, $360,408; maintenance and distribution, $689,103, and treatment plant, $695,237. 5. Cash receipts for customer deposits totaled $2,427 6. Cash collections on customer accounts totaled $2,943,401, of which $209,531 was from the General Fund. 7. Cash payments for the period were as follows: Accounts Payable, $1,462,596; interest (which includes the interest payable). $395,917, bond principal, $400,000; machinery and equipment, $583,425; and return of customer deposits, $912. 8. A state grant amounting to $475,000 was received to help pay for new water treatment equipment 9. Accounts written off as uncollectible totaled $10,013. 10. The utility fund transferred $800,000 in excess operating income to the General Fund. 11. Adjusting entries for the period were recorded as follows: depreciation on buildings was $240,053 and on machinery and equipment was $360,079; the allowance for uncollectible accounts was increased by $14,913; an accrual for unbilled customer receivables was made for $700,000; accrued interest income was $15,849; and accrued interest expense was $61,406. 12. The Revenue Bond Payable account was adjusted by $400,000 to record the current portion of the bond. 13. Closing entries and necessary adjustments were made to the net position accounts. d. Prepare a statement of cash flows for the Water Utility Fund as of June 30, 2020. (N minus sign.) Answer is not complete. CITY OF BAYLAKE Water Utility Fund Statement of Cash Flows For the Year Ended June 30, 2020 Cash Flows from Operating Activities: Cash Received from Customers $ 2,943,401 Cash Paid To: Employees and Suppliers Net Cash Provided by Operations Cash Flow from Noncapital Financing Activities: Transfer to General Fund (1,462,596) 1,480,805 $ (800,000) (800,000) Net Cash Used by Noncapital Financing Activities Cash Flows from Capital and Related Financing Activities: Proceeds from Capital Grant Purchase of Machinery and Equipment Principal Paid on Capital Debt Interest Paid on Capital Debt 475,000 (583,425) (400,000) (395,917) (904,342) Net Cash Used by Capital and Related Financing Activities Cash Flows from Investing Activities: Interest Received on Investments Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents, July 1, 2019 Cash and Cash Equivalents, June 30, 2020 260,000 36,463 1.784,212 $ 1,820,675 Reconciliation of Cash and Cash Equivalents to the Balance Sheet End of Year Beginning of Year Cash and Cash Equivalents in Current and Accured Assets $ 1,811,482 $ 1,775,019 Restricted Cash and Cash Equivalents 10,708 9,193 Total Cash and Cash Equivalents $ 1,822,190 $ 1.784,212 Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income $ 822,764 Adjustments: Depreciation Expense 600,132 Uncollectible Accounts 4,900 Increase in Accounts Receivable (44,808) Increase in Accrued Utility Revenue (200,000) Decrease in Due from General Fund 15,665 Increase in Accounts Payable 282,152 Increase in Customer Deposits 3,339 Net Cash Provided by Operating Activities $ 1,484,144

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