QUESTION 8

The following transactions were among those reported by Corfe City's electric utility enterprise fund for Year 1:

Cash paid to supplier $ 900,000

Cash received from customer households 2,700,000

Proceeds from the sale of revenue bonds 4,500,000

In the electric utility enterprise fund's statement of cash flows for the year ended December 31, Year 1, what amount should be reported as cash flows from capital and related financing activities?

1. $4,500,000
2. $5,400,000
3. $7,200,000
4. $8,100,000