Inglis City had a beginning cash and cash equivalents balance in its internal service fund of $895,705. During the current year, the following transactions occurred:

1. Interest received on investments totaled $42,440.
2. The city acquired additional equity investments totaling $75,050.
3. A grant was received from the state in the amount of $50,000 for summer interns.
4. Receipts from sales of goods or services totaled $2,915,560.
5. Payments for supplies were made in the amount of $1,642,120.
6. Payments to employees for salaries amounted to $479,360.
7. Equipment was sold for $57,500. It had a book value of $56,665.
8. A $25,000 transfer was made to the General Fund.
9. Other cash expenses for operations were $89,200.
10. Long-term debt payments for capital acquisitions totaled $525,070.

Required Prepare a statement of cash flows for the Inglis City internal service fund. (Ignore the reconciliation of operating income to net cash provided by operating activities because insufficient information is provided to complete the reconciliation.) (Cash outflows should be indicated by a minus sign.)

Answer is complete and correct. \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|l|}{ INGLIS CITY } \\ \hline \multicolumn{4}{|l|}{ Internal Service Fund } \\ \hline \multicolumn{4}{|l|}{ Statement of Cash Flows } \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Operating Activities: } \\ \hline Cash Received from Customers & & $2,915,560 & \\ \hline \multicolumn{4}{|l|}{ Cash Paid To: } \\ \hline & $(1,642,120) & & \\ \hline Employees & (479,360) & & \\ \hline \multirow[t]{2}{*}{ Other } & (89,200) & & \\ \hline & & (2,210,680) & \\ \hline Net Cash Provided by Operating Activities & & & $704,880 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Noncapital Financing Activities: } \\ \hline Grant from State & & 50,000 & \\ \hline Transfer to General Fund & & (25,000) & \\ \hline Net Cash Provided by Noncapital Financing Activities & & & 25,000 \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Capital Financing Activities: } \\ \hline Proceeds from Sale of Capital Assets & 57,500 & & \\ \hline Debt Payment & (525,070) & & \\ \hline Net Cash Used by Capital Financing Activities & & & (467,570) \\ \hline \multicolumn{4}{|l|}{ Cash Flows from Investing Activities: } \\ \hline Purchase of Investments & (75,050) & & \\ \hline Interest Received on Investments & 42,440 & & \\ \hline Net Cash Provided by Investing Activities & & & (32,610) \\ \hline Net Increase in Cash and Cash Equivalents & & & 229,700 \\ \hline Cash and Cash Equivalents, Beginning & & & 895,705 \\ \hline Cash and Cash Equivalents, Ending & & & $1,125,405 \\ \hline \end{tabular}