Continuing Questions for Town of Cary

Continuing Problem (Questions 1 through 8) textbook pages 411 – 2021 Town of Cary, NC CAFR is used for these questions found at /home/showpublisheddocument/27493/637751798814470000 (Enter the answer to the question in the blanks provided.)
1 Activities accounted for in both internal service funds and major enterprise funds -
1 Utilities
2 Transportation
3 Public safety__________________________________________________________________________
Could any of these activities have been accounted for in a general or other governmental fund?
____ Yes, some of these activities could have been accounted for in a general or other governmental fund. However, the Town of Cary decided to create internal service funds and major enterprise funds to track these activities more closely. _______________
2 How are the internal service fund activities reported in the government-wide state of net position? -
_____ The internal service fund activities are reported in the government-wide statement of net position as expenses. ____
How are the internal service fund activities reported in the proprietary funds statement of net position?
____ The internal service fund activities are reported in the proprietary funds statement of net position as expenses___________
3 Did any of the internal service funds report significant operating surpluses or deficits for the year? Yes or No
________yes___________________________________________
Were any accumulated significant net asset balances over the years not invested in capital assets? Yes or No
_______yes_____________________________________
1 Were any of the Town of Cary’s enterprise funds “profitable” during the year? Yes or No __ If so, what has the Town of Cary done with the “earnings”? __________________________
____ Yes, the Town of Cary's enterprise funds were profitable during the year. The Town of Cary has used the earnings to improve the enterprise funds and to provide better services to the community.______________ Has Cary transferred them to the general fund? Yes or No ___________________________
2 Does the Town of Cary have revenue bonds outstanding that are related to business-type activities? Yes or
No ______________yes_________________________________ If so, for what activities? the Town of Cary has revenue bonds outstanding that are related to business-type activities. These activities include water and sewer utilities, solid waste management, and stormwater management.__________________________________________________________________________
3 Does the Town of Cary, NC ‘s CAFR include a statement of cash flows for proprietary funds? Yes or No
_________yes_________________________________________________________
Is the statement a direct or indirect basis? ______________direct basis_______________
In how many categories are the cash flows presented? _____ There are three categories. ________
Which of these categories resulted in net cash inflows? _____ Operating activities resulted in net cash inflows. ____
Which resulted in net cash outflows? ____ Capital and financing activities resulted in net cash outflows. _______
1 What was the total operating income? ______ 81,905,752(utility systems operating funds) and 23,613,163_ (government activities Internal Service Funds) ________ What was total net cash provided by operating activities? ____8,804,505 (utility systems operating funds) and 500,665_ (government activities Internal Service Funds) __
What accounts for the largest difference between these two amounts? ____The largest difference between these two amounts is due to the change in operating assets and liabilities. ______
2 Has the Town of Cary, NC entered into any service concession arrangements? Yes or No ___
Which specific ones, and why? _________The Town of Cary, NC has not entered into any service concession arrangements. ______ __ ___________________________________________________________________________
Problem 9-4 (questions 1-4) textbook page 413.
1 Journal entries – Internal Service Fund

Debit

Credit

(a) Internal Service Fund

$300,000


General Fund


$300,000




(b) internal Service Fund

$300,000


Equipment


$300,000




(c) Internal Service Fund

$1,600,000


Operating Costs


$1,600,000

(d)



General Fund

$1,600,000


Internal Service Fund


$1,600,000

2 Journal entries – General Fund

Debit

Credit

(a) General Fund

$300,000


cash


$300,000

(b) cash

$300,000


internal service fund


$300,000




3 Would the establishment of the internal service fund result in a decrease in overall government costs
(e.g. cash outflows)? Yes or No ________ Yes ________...