Internal Service Fund Financial Statements

At the beginning of fiscal year 2014, the City of Wooster established a central supplies storehouse to service its several funds. The general fund contributed $26,000,000 (nonrefundable) to aid in the establishment of the supplies storehouse. It was agreed that the storehouse would charge other funds for the purchase price of supplies plus 15%. During the year, the storehouse purchased $22,000,000 of supplies, paid operating expenses of $3,000,000, and billed other funds for $21,275,000. All accounts are settled except $1,200,000 remaining to be collected from the general fund for supplies billed.

Required

Prepare the statement of revenues, expenses, and changes in net position for fiscal 2014, and the statement of net position at the end of fiscal 2014 for the central supplies storehouse.

• Enter your answers in thousands. For example, $1,000,000 is $1,000.
• Use a negative sign with your answer for operating income (loss) to indicate an operating loss; otherwise, do not use a negative sign with your answers.
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Enter your answers in thousands. For example, $1,000,000 is $1,000. Use a negative sign with your answer for operating income (loss) to indicate an oper City of Wooster Central Supplies Storehouse Statement of Revenues, Expenses, and Changes in Net Position For the Year 2014 (in thousands) Operating revenue $ 21,275 Operating expenses (1) 3,725 x Operating income (3.725) X Capital contributions (24,800) X Change in net position 24,800 X Total net position-beginning 21,075 X Total net position-ending $ 21,075 x (1) Includes cost of goods sold City of Wooster Central Supplies Storehouse Statement of Net Position At Fiscal Year-End 2014 (in thousands) Assets Current assets: Cash $ 21,075 Due from general fund 1,200 Inventory 3,500 Total assets $ 25,775 Net position Unrestricted 0 X Total net position $ 20,175 X