- The Township received $500,000 in property tax revenue during the year.
- The Township collected $100,000 in fines and penalties during the year.
- The Township paid $250,000 in salaries and wages during the year.
- The Township paid $50,000 in utilities expenses during the year.
- The Township paid $75,000 in supplies expenses during the year.
- The Township paid $25,000 in interest expenses during the year.
- The Township received $50,000 in grants during the year.
- The Township received $25,000 in donations during the year.
- The Township received $100,000 in fees for services during the year.
- The Township received $75,000 in investment income during the year.
- The Township paid $200,000 in debt principal during the year.
- The Township paid $50,000 in debt interest during the year.
Using this information, you prepare the following financial statements for Taino Township:
1. Income Statement for the Year Ended December 31, 20XX:
Revenue:
Property tax revenue: $500,000
Fines and penalties: $100,000
Grants: $50,000
Donations: $25,000
Fees for services: $100,000
Investment income: $75,000
Total revenue: $850,000
Expenses:
Salaries and wages: $250,000
Utilities expenses: $50,000
Supplies expenses: $75,000
Interest expenses: $25,000
Debt principal: $200,000
Debt interest: $50,000
Total expenses: $650,000
Net income: $200,000
2. Statement of Cash Flows for the Year Ended December 31, 20XX:
Cash flows from operating activities:
Property tax revenue received: $500,000
Fines and penalties collected: $100,000
Fees for services received: $100,000
Investment income received: $75,000
Total cash inflows from operating activities: $775,000
Salaries and wages paid: $250,000
Utilities expenses paid: $50,000
Supplies expenses paid: $75,000
Interest expenses paid: $25,000
Net cash outflows from operating activities: $400,000
Cash flows from investing activities:
None
Cash flows from financing activities:
Debt principal paid: $200,000
Debt interest paid: $50,000
Total cash outflows from financing activities: $250,000
Net increase in cash: $125,000
3. Balance Sheet as of December 31, 20XX:
Assets:
Cash: $125,000
Liabilities:
None
Equity:
Retained earnings: $125,000
Total liabilities and equity: $125,000