Problem 2: true/false questions Use the following information to answer questions 1 and 2. A water utility issued $20,000,000 of face value 3% revenue bonds on September 30, 2021. The bonds were sold for $21,500,000, a price that resulted in a yield 2.5%. The bonds pay interest on March 31 and September 30, and, starting on September 30, 2022, $1,000,000 of bond principal will mature and be paid. Which of the following statements is correct on the December 31, 2021, statement of net position for the water utility? 1. Interest payable of $161,250 will be reported under current liabilities. 2. $19,000,000 of bonds payable will be reported under long-term debt. 3. GASB guidance for the statement of cash flows results in related transactions being reported in one section of the statement instead of in two sections. 4. The format and disclosures of the statement of cash flows reported by a state or local government are more user friendly than the format and disclosures of the statement of cash flows reported by for-profit entities. 5. Because of low fares and all the free rides the Chicago Transit Authority is required to give to certain classes of riders, the CTA needs noncapital financing in order to sustain its operations. 6. When legislation was passed by the State to institute a State lottery, the General Assembly stated that the operating cash flows from the State lottery would be used to support education.