Washington City created an Information Technology department four years ago to centralize information technology (IT) functions for the city. The goal of the department was to reduce costs, avoid duplication of efforts, and provide up-to-date technology to all of the citys operations. The fund was designed to be self-supporting; that is, all costs are to be recovered through user fees, but any excess of fees over expenses should be less than 6 percent. The preclosing trial balance for the IT department as of last year, is shown below.

	Debits				Credits
	(in thousands)
Cash	$	13,600
Due from Other Funds		3,870
Materials and Supplies Inventory		320
Machinery and Equipment		52,300
Accumulated Depreciation					$	29,400
Accounts Payable						1,520
Due to Federal Government						2,600
Due to Other Funds						1,170
Net PositionNet Investment in Capital Assets						22,900
Net PositionUnrestricted						12,500
	$	70,090			$	70,090

During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred:

Gross employee wages were $55,500, including the employers share of social security taxes amounting to $3,960. Federal income and social security taxes withheld from that amount totaled $18,100.

Office expenses in the amount of $3,590 were paid in cash.

Materials and supplies purchased on account during the year were $8,130.

A bill totaling $14,050 was received for utilities provided by Washington Citys utility fund.

Cash paid to the federal government for payroll taxes was $22,400.

Cash paid to the Utility Fund was $13,600.

Accounts payable at year-end totaled $2,850.

Materials and supplies used during the year were $7,970.

Charges to departments during the fiscal year were as follows:

b. Prepare a statement of net position for the Information Technology Fund as of December 31.

General Fund	$	55,600
Special Revenue Fund		20,000

10. Unpaid balances at year-end were:

General Fund	$	3,500
Special Revenue Fund		1,900

11. The depreciation for the year was $6,000. 12. Revenue and expense accounts for the year were closed.

WASHINGTON CITY

Information Technology Fund

Statement of Net Position

As of December 31

Assets

Current Assets:

Total Current Assets

Capital Assets:

Liabilities

Total Current Liabilities

Net Position

Net Position-Net Investment in Capital Assets

Net Position-Unrestricted

Total Net Position

Prepare a statement of cash flows for the Information Technology Fund for the current year ended December 31. (Cash outflows should be indicated by a minus sign. Enter your answers in thousands of dollars.)

WASHINGTON CITY

Information Technology Fund

Statement of Cash Flows

For the Year Ended December 31

Cash Flows from Operating Activities:

Cash Received from Customers

Cash Paid To:

Employees

Other Departments

Suppliers

Federal Government

Net Cash Provided by Operations

Net Decrease in Cash and Cash Equivalents

Cash and Cash Equivalents, 01/01

Cash and Cash Equivalents, 12/31

Reconciliation of Operating Income to Net Cash Provided by Operations

Operating Income/(Loss)Adjustments:

Depreciation ExpenseMachinery and Equipment

Increase in Inventory

Increase in Receivables from Other Funds

Increase in Accounts Payable

Decrease in Due to Federal Government

Increase in Due to Other Funds

Net Cash Provided by Operating Activities