What follows are the statement of revenues, expenses, and changes in net position, and the statement of cashflows for Tucson, Arizona's fleet services internal service fund.

1. How do you account for the difference between net operating income of $105 and cash from operating activities of $10,789? Prepare a reconciling schedule in which you account for the difference.

2. How would the revenues and expenses of the fund be reported on the city's government-wide statement of activity?
3. How would the revenues and expenses of the fund be reported on the city's statement of revenues, expenses, and changes in net position?
4. How would the difference between charges for services and cash received from customers be reflected on the city's government statement of net position?
5. How would the charges for services most likely be reflected on the city's general fund statement of revenues and expenditures and changes in fundbalance?

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Fleet Services Fund Stalement of Revenues, Eapenses, and Changes in Net Position (in thousands) Charges for services Operating erpenses Wages and salaries Contracial services Supplies Depreciation $24,019 $ 4,609 1,765 8,826 8.714 23,914 Total operating expenses Net operating income Nonoperating revenues (expenses) Investment income Interest expense $ 498 (182) 751 215 $1,282 S 1,387 Gain from sale of property Capital grants Total nonoperating revenues Net income et position- Beginning of year 3,880 Net position-End of year Feet Services Pund Statewent of Cash Flows Cash flows for operting activities in thousands) Cash reccived from customers Cash payments to suppliers for goods and $24,530 (9,023) scrviceS Cash payments to employees Net cash provided by operating activities Cash flozus from noncaal fnanong activities0 Cash s fron capital snd related financing $10,789 actrasser Acquisition or construction of capital assets Proceeds from sale of property and ,219) equpment Principal paid on capital debt Interest paid on capital debt (1,168) Net cash flows from capital and related financing activities Cash flor from investing activities Investment income Net cash flows from investing activities Net increase in cash and cash equivalents Cash and cash equivalents, beginning of $(8,655) 467 467 $ 2,601 year Cash and cash equivalents, end ofyear 5,253 7,854