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CITY OF LINO LAKES, MINNESOTA <br />STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS <br />Year Ended December 31, 2013 <br />Water <br />Total <br />Sewer 2013 <br />Cash flows from operating activities: <br />Cash receipts from customers $ 1,222,831 $ 1,520,747 $ 2,743,578 <br />Cash paid to suppliers (304,250) (962,241) (1,266,491) <br />Cash paid to employees (180,975) (185,675) (366,650) <br />Net cash flows from operating activities 737,606 372,831 1,110,437 <br />Cash flows from noncapital financing activities: <br />Net transfers (35,862) (35,862) (71,724) <br />Cash flows from capital and related financing activities: <br />Collection of special assessments (835) 682 (153) <br />Acquisition of capital assets (3,000) (51,353) (54,353) <br />Net cash flows used by capital and related <br />financing activities (3,835) (50,671) (54,506) <br />Cash flows from investing activities: <br />Interest on investments (17,007) (27,766) (44,773) <br />Net increase in cash and cash equivalents 680,902 258,532 939,434 <br />Cash and cash equivalents - January 1 4,110,341 7,028,014 11,138,355 <br />Cash and cash equivalents - December 31 $ 4,791,243 $ 7,286,546 $ 12,077,789 <br />Reconciliation of operating income to net cash <br />from operating activities: <br />Operating income (loss) $ 280,942 $ (67,998) $ 212,944 <br />Adjustments to reconcile operating income to <br />net cash flows from operating activities: <br />Depreciation 416,468 437,725 854,193 <br />Change in assets and liabilities: <br />Increase in receivables 14,089 4,350 18,439 <br />(Increase) decrease in prepaid items 2,660 (2,957) (297) <br />Increase in inventory 24,614 24,614 <br />Increase (decrease) in payables (1,167) 1,711 544 <br />Net cash flows from operating activities $ 737,606 $ 372,831 $ 1,110,437 <br />Noncash investing, capital, and financing activities: <br />Capital asset contributions from government $ 291,403 $ 133,625 $ 425,028 <br />The accompanying notes are an integral part of these hasic.fnancial statentents. <br />IV -18 <br />