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                                                                   City of Muskegon
                                                               Internal Service Funds

                                                    COMBINING STATEMENT OF CASH FLOWS

                                                            Year Ended December 31, 2003




                                                               Engineering                                                  General                      Public Service                    Combined 
                                                                  Services                  Equipment                      Insurance                         Building                            Totals
Cash flows from operating activities
   Receipts from customers                                                    9,341
                                                              $                           $     114,885
                                                                                                                       $        127,635
                                                                                                                                                         $                 -             $      251,861
                                                                                                                                                                                                  
   Receipts for internal services provided                              516,169
                                                                                                  2,299,746
                                                                                                                              2,449,390
                                                                                                                                                                   612,780
                                                                                                                                                                                            5,878,085
   Payments to suppliers                                           (143,594)
                                                                                            (1,056,986)
                                                                                                                            (3,716,107)
                                                                                                                                                              (281,372)
                                                                                                                                                                                           (5,198,059)
   Payments to employees                                           (316,022)
                                                                                                   (381,152)
                                                                                                                                 (25,106)
                                                                                                                                                              (161,460)
                                                                                                                                                                                                 (883,740)
   Payments to internal service funds                                 (82,013)
                                                                                                   (243,599)
                                                                                                                                   (9,386)
                                                                                                                                                                 (33,643)
                                                                                                                                                                                                 (368,641)
Net cash provided by (used for) operating activities                  (16,119)
                                                                                                 732,894
                                                                                                                            (1,173,574)
                                                                                                                                                                   136,305
                                                                                                                                                                                                 (320,494)

Cash flows from noncapital financing activities
   Transfers in                                                                  -                                -
                                                                                                                              1,179,938
                                                                                                                                                                            -               1,179,938

Cash flows from capital and related financing activities
   Acquistion and construction of capital assets                                 -                 (489,448)
                                                                                                                                            -                    (12,356)
                                                                                                                                                                                                 (501,804)
   Proceeds from sale of capital assets                                          -                 23,401
                                                                                                                                            -                               -                          23,401
Net cash used for capital and related 
  financing activities                                                           -                 (466,047)
                                                                                                                                            -                    (12,356)
                                                                                                                                                                                                 (478,403)
 Cash flows from investing activities
   Interest and dividends on investments                                      1,788
                                                                                                   12,813
                                                                                                                                   11,560
                                                                                                                                                                                  315
                                                                                                                                                                                                       26,476

   Net increase (decrease) in cash and cash 
    equivalents                                                       (14,331)
                                                                                                 279,660
                                                                                                                                   17,924
                                                                                                                                                                   124,264
                                                                                                                                                                                                      407,517

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

Cash and cash equivalents at end of year                                     86,869
                                                              $                           $     936,872
                                                                                                                       $        902,877
                                                                                                                                                                   124,264
                                                                                                                                                         $                                  2,050,882
                                                                                                                                                                                         $   


Reconciliation of operating income (loss) to net cash
 provided by (used for) operating activities
   Operating income (loss)                                    $      (28,401)
                                                                                          $     125,326
                                                                                                                       $       (957,372)
                                                                                                                                                                        73,240
                                                                                                                                                         $                               $     (787,207)
                                                                                                                                                                                                  
   Adjustments to reconcile operating income (loss) to 
    net cash provided by (used for) operating activities
      Depreciation and amortization                                           2,205
                                                                                                 632,139
                                                                                                                                            -                           69,920
                                                                                                                                                                                                      704,264
   (Increase) decrease in 
      Accounts receivable                                                     3,033
                                                                                                   19,881
                                                                                                                                (120,247)
                                                                                                                                                                            -                         (97,333)
      Inventories                                                                -                      (3,985)
                                                                                                                                            -                               -                          (3,985)
      Prepaid items                                                          (44)
                                                                                                        (3,716)
                                                                                                                                            -                         (332)
                                                                                                                                                                                                       (4,092)
   Increase (decrease) in
      Accounts payable                                                        6,920
                                                                                                     (40,100)
                                                                                                                                 (94,247)
                                                                                                                                                                   (5,372)
                                                                                                                                                                                                 (132,799)
      Accrued payroll                                                              460
                                                                                                     1,515
                                                                                                                                      (296)
                                                                                                                                                                             1,588
                                                                                                                                                                                                        3,267
      Due to other funds                                                         -                                -
                                                                                                                                            -                      (1,018)
                                                                                                                                                                                                       (1,018)
      Compensated absences payable                                         (292)
                                                                                                     1,834
                                                                                                                                   (1,412)
                                                                                                                                                                   (1,721)
                                                                                                                                                                                                       (1,591)
Net cash provided by (used for) operating activities          $      (16,119)
                                                                                          $     732,894
                                                                                                                            (1,173,574)
                                                                                                                       $                                           136,305
                                                                                                                                                         $                               $     (320,494)