Question

A government was awarded a grant from another government. The $8,000,000 grant is restricted to use for construction of a facility for one of the grantee government's enterprise activities. The grant is for half the cost of the facility. The grantor will reimburse half of the costs as they are incurred. At the end of the first fiscal year, $3,000,000 has been spent on the project. $1,500,000 has been collected from the grantor. How should the grantee's Enterprise Fund statement of cash flows report the cash inflows

Answer 1

Answer:

Capital and related financing activities

Explanation:

The grantee's Enterprise Fund statement of cash flows should report the cash inflows as capital and related financing activities