The numbered items on the left consist of a variety of transactions that occurred in Jeffersen City's water utility enterprise fund for the year ended June 30, 20X9. Items A, B, C, and D on the right represent the four categories of cash flows that are reported on the statement of cash flows for proprietary funds. Item E is for transactions that are not reported on the statement of cash flows. Assume that the direct method is used for disclosing cash flows from operating activities. Select the appropriate letter to indicate where each transaction should be disclosed on the statement of cash flows or whether that item would not be reported on the statement of cash flows.

Transactions
1. Received $5,000,000 from revenue bonds to be used for construction of water treatment plant.
2. Paid $500,000 of salaries to employees of the water utility.
3. Received $1,000,000 state grant restricted for construction of water treatment plant.
4. Collected $2,500,000 of accounts receivable from households for use of city water.
5. Determined that depreciation expense for the year amounted to $300,000.
6. Received $75,000 state grant restricted to the maintenance of fixed assets.
7. Paid $250,000 of interest on the revenue bonds issued in item 1.
8. Borrowed $125,000 from a local bank on revenue anticipation notes payable.
9. Paid $5,000 of interest on the notes payable in item 8.
10. Spent $1,200,000 of the revenue bonds for construction of the water treatment plant.
11. Paid $5,000 fire insurance premium on June 30, 20X9, for next year's insurance coverage.
12. Determined that uncollected accounts receivable amounted to $135,000 on June 31, 20X9.
13. Acquired $250,000 of state bonds as an investment of idle funds.
14. Received $7,500 of interest on the state bonds in item 13.
15. Received a $375,000 contribution from the city's general fund to be used for the construction of water treatment plant.
Categories of Disclosure
A. Operating activities
B. Noncapital financing activities
C. Capital and related financing activities
D. Investing activities
E. Not reported on the statement of cash flows