Question

Identify the following as cash inflows or outflows to a privately-owned water company: well drilling, maintenance, water sales, accounting, government grants, issuance of bonds, energy cost, pension plan contributions, heavy equipment purchases, used equipment sales, stormwater fees, and discharge permit revenues.

Answer 1

Cash Inflow would be cash coming into the company and Cash Outflow would be going out.

Cash Inflow

• Water Sales
• Government Grants - money given to the company by the Government to help in its operation
• Issuance of bonds - Cash inflow from debt issuance
• Used Equipment sales - cash from sale of used equipment
• Stormwater fees - paid by customers to take stormwater from property
• Discharge Permit revenue

Cash Outflow

• Well drilling - drilling well requires cash expenditure
• Maintenance - cash expense
• Accounting - Administrative expenditure
• Energy Cost
• Pension Plan Contributions - contributing to its employees' pension plans is an expense
• Heavy Equipment Purchases - Capital expenditure