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CITY 01? LITTLE CANADA, MINNESOTA <br />STATEMENT OF CASH FLOWS <br />PROPRIETARY FUNDS <br />For The Year Ended December 31, 2005 <br />Statement 8 <br />Business -Type Activities Enterprise Funds <br />Water Sewer Totals <br />Operating Operating 2005 2004 <br />Cash flows from operating activities: <br />Receipts from customers and users $1,066,759 $1,085,707 $2,152,466 $2,158,280 <br />Payment to suppliers (652,529) (840,092) (1,492,621) (1,505,503) <br />Payment to employees (202,009) (208,051) (410,060) (373,446) <br />Miscellaneous revenue (expense) 1,054 3,991 5,045 (80) <br />Net cash flows from operating activities 213,275 41,555 254,830 279,251 <br />Cash flows from noncapital financing activities: <br />Transfer to Water /Sewer Equipment Replacement Fund <br />(187,143) (108,547) <br />Cash flows from capital and related financing activities: <br />Acquisition of capital assets (18,853) <br />Rent proceeds 17,869 <br />Net cash flows from capital and related financing activities (984) <br />(295,690) (250,833) <br />0 <br />(18,853) (14,406) <br />17,869 15,863 <br />(984) 1,457 <br />Cash flows from investing activities: <br />Investment income 13,969 21,402 35,371 29,296 <br />Net increase (decrease) in cash and cash equivalents 39,117 (45,590) (6,473) 59,171 <br />Cash and cash equivalents - January 1 210,484 374,022 584,506 525,335 <br />Cash and cash equivalents - December 31 $249,601 $328,432 $578,033 $584,506 <br />Reconciliation of operating income (loss) to net cash <br />provided (used) by operating activities: <br />Operating income (loss) ($56,046) $26,499 ($29,547) $18,590 <br />Adjustments to reconcile operating income (loss) <br />to net cash flows from operating activities: <br />Miscellaneous revenue 1,054 3,991 5,045 (80) <br />Depreciation 187,343 108 ,547 295,890 250,833 <br />Changes in assets and liabilities: <br />Decrease (increase) in receivables 69,513 (77,796) (8,283) (18,652) <br />Decrease (increase) in prepaid items - (1,747) (1,747) (3,863) <br />Increase (decrease) in payables 11,411 (17,939) (6,528) 32,423 <br />Total adjustments 269,321 15,056 284,377 260,661 <br />Net cash provided by operating activities <br />$213,275 $41,555 $254,830 $279,251 <br />Noncash investing, capital and financing activities: <br />Water system assets in the amount of$187,143 and $1,388,031 were contributed in 2005 and 2004, respectively. <br />Sewer system assets in the amount of $137,083 and $734,615 were contributed in 2005 and 2004, respectively. <br />A -9 <br />