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CITY OF SOUTH BEND <br />COMBINING STATEMENT OF CASH FLOWS -INTERNAL SERVICE FUNDS <br />For the Year Ended December 31, 2006 <br />(Continued) <br /> Liability Self- <br /> Insurance Funded <br /> Premium Employee Central <br /> Reserve Benefits Services Total <br />Reconciliation of operating income (loss) to net cash <br />provided (used) by operating activities: <br />Operating income (loss) $ 298,893 $ 192,645 $ (6,331) $ 485,207 <br /> <br />Adjustments to reconcile operating income (loss) to <br />net cash provided (used) by operating activities: <br />Depreciation expense - - 73,822 73,822 <br />F, (Increase) decrease in assets: <br />w Accounts receivable (3,837) 61,136 1,055 58,354 <br />~ Intergovernmental receivables - - 14,742 14,742 <br />Interfund receivables - - 101,598 101,598 <br />Inventories - - (248,814) (248,814) <br />Prepaid items (1,117) - - (1,117) <br />Increase (decrease) in liabilities: <br />Accounts payable (15,157) 874,422 (93,448) 765,817 <br />Interfund payables 1,025 (73) 2,086 3,038 <br />Accrued payroll payable 212 33 1,274 1,519 <br />Compensated absences payable 2,247 152 3,228 5,627 <br />Estimated unfiled claims 38,040 (242,108) - (204,068) <br />Total adjustments 21,413 693,562 (144,457) 570,518 <br /> <br />Net cash provided (used) by operating activities $ 320,306 $ 886,207 $ (150,788) $ 1,055,725 <br /> <br />Noncash investing, capital and financing activities: <br />Capital asset disposals $ - $ - $ 7,800 $ 7,800 <br />