Final answer:
The cash flow statement for a proprietary fund has four parts: cash flows from operating, investing, and financing activities, and the net increase or decrease in cash and cash equivalents.
Step-by-step explanation:
The cash flow statement for a proprietary fund is divided into four parts:
- Cash flows from operating activities
- Cash flows from investing activities
- Cash flows from financing activities
- Net increase (decrease) in cash and cash equivalents
The required method for preparing the cash flow statement for a proprietary fund is the direct method. The direct method presents specific cash inflows and outflows, while the indirect method starts with net income and makes adjustments to show cash flows.