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(Solved): To: Emma, Accounting Manager Date: October 10, 20X8 Re: Proprietary Statement of Cash Flows Review ...



To: Emma, Accounting Manager Date: October 10, 20X8 Re: Proprietary Statement of Cash Flows Review In reference to our discussion, I have reviewed the proprietary fund statement of cash flow for the fiscal year ending September 30, 20X8. The following errors require correction before release of the statement: 1. Advances or repayments from other funds are cash flows from operating activities. They should be reclassified as cash flows from noncapital financing activities. 2. Cash payments to vendors are cash flows from noncapital financing activities. They should be reclassified to cash flows from operating activities. 3. The reconciliation does not agree to net cash provided (used) by capital and related financing activities. 4. Security lending is listed under cash flows from capital and related financing activities, and payment of bond principal is listed under cash flows from investing activities. Security lending should be listed under cash flows from investing activities, and payment of bond principal should be listed under cash flows from capital and related financing activities. These errors do not need to be corrected because they do not affect the ending balances of cash and cash equivalents. Thank you for your assistance!



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