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                                                                   City of Muskegon
                                                               Internal Service Funds

                                                    COMBINING STATEMENT OF CASH FLOWS

                                                            Year Ended December 31, 2002




                                                               Engineering                                                   General                 Public Service                Combined 
                                                                  Services                   Equipment                      Insurance                    Building                        Totals
Cash flows from operating activities
   Receipts from customers                                                   26,004
                                                              $                            $       86,181
                                                                                                                        $        151,517
                                                                                                                                                     $                 -         $      263,702
                                                                                                                                                                                          
   Receipts for internal services provided                              488,232
                                                                                               2,231,064
                                                                                                                               2,236,965
                                                                                                                                                               612,766
                                                                                                                                                                                        5,569,027
   Payments to suppliers                                           (136,081)
                                                                                                    (819,269)
                                                                                                                             (3,534,962)
                                                                                                                                                          (313,815)
                                                                                                                                                                                   (4,804,127)
   Payments to employees                                           (339,090)
                                                                                                    (351,279)
                                                                                                                                  (33,973)
                                                                                                                                                          (154,312)
                                                                                                                                                                                         (878,654)
   Payments to internal service funds                                 (85,032)
                                                                                                    (228,301)
                                                                                                                                  (11,148)
                                                                                                                                                          (144,639)
                                                                                                                                                                                         (469,120)
Net cash provided by (used for) operating activities                  (45,967)
                                                                                                  918,396
                                                                                                                             (1,191,601)
                                                                                                                                                                        -                (319,172)

Cash flows from noncapital financing activities
   Operating transfers in                                                        -                                 -
                                                                                                                               1,206,722
                                                                                                                                                                        -               1,206,722
Net cash provided by (used for) noncapital financing
 activities                                                                      -                                 -
                                                                                                                               1,206,722
                                                                                                                                                                        -               1,206,722

Cash flows from capital and related financing activities
   Acquistion and construction of capital assets                                 -                  (732,328)
                                                                                                                                             -                          -                (732,328)
   Proceeds from sale of capital assets                                          -                  93,170
                                                                                                                                             -                          -                      93,170
Net cash provided by (used for) capital and related 
  financing activities                                                           -                  (639,158)
                                                                                                                                             -                          -                (639,158)
 Cash flows from investing activities
   Interest and dividends on investments                                          3,000
                                                                                                    10,123
                                                                                                                                    14,466
                                                                                                                                                                        -                      27,589
Net cash provided by investing activities                                         3,000
                                                                                                    10,123
                                                                                                                                    14,466
                                                                                                                                                                        -                      27,589

   Net increase (decrease) in cash and cash 
    equivalents                                                       (42,967)
                                                                                                  289,361
                                                                                                                                    29,587
                                                                                                                                                                        -                     275,981

Cash and cash equivalents at beginning of year                          144,167
                                                                                                  367,851
                                                                                                                                  855,366
                                                                                                                                                                        -               1,367,384

Cash and cash equivalents at end of year                                101,200
                                                              $                            $     657,212
                                                                                                                        $        884,953
                                                                                                                                                     $                 -                1,643,365
                                                                                                                                                                                 $   


Reconciliation of operating income (loss) to net cash
 provided by (used for) operating activities
   Operating income (loss)                                    $      (26,368)
                                                                                           $     193,286
                                                                                                                             (1,343,733)
                                                                                                                        $                                        35,174
                                                                                                                                                     $                             (1,141,641)
                                                                                                                                                                                 $  
   Adjustments to reconcile operating income (loss) to 
    net cash provided by (used for) operating activities
      Depreciation and amortization                                               2,205
                                                                                                  682,278
                                                                                                                                             -                   68,494
                                                                                                                                                                                              752,977
   (Increase) decrease in 
      Accounts receivable                                               (1,210)
                                                                                                      (12,141)
                                                                                                                                             -                          -                     (13,351)
      Inventories                                                                -                  13,448
                                                                                                                                             -                          -                      13,448
      Prepaid items                                                        (283)
                                                                                                         (1,104)
                                                                                                                                             -                    (315)
                                                                                                                                                                                               (1,702)
   Increase (decrease) in
      Accounts payable                                                  (3,154)
                                                                                                    42,716
                                                                                                                                  151,776
                                                                                                                                                                      7,394
                                                                                                                                                                                              198,732
      Accrued payroll                                                   (1,469)
                                                                                                         (2,399)
                                                                                                                                         147
                                                                                                                                                                           52
                                                                                                                                                                                               (3,669)
      Due to other funds                                                         -                                 -
                                                                                                                                             -            (109,739)
                                                                                                                                                                                         (109,739)
      Compensated absences payable                                    (15,688)
                                                                                                      2,312
                                                                                                                                         209
                                                                                                                                                               (1,060)
                                                                                                                                                                                              (14,227)
Net cash provided by (used for) operating activities          $      (45,967)
                                                                                           $     918,396
                                                                                                                             (1,191,601)
                                                                                                                        $                            $                 -         $     (319,172)