Note also that the change in net assets displayed on the statement of revenues, expenses, and changes in net assets added to (or subtracted from) the beginning net assets for the fiscal year (which are the ending net assets of the previous fiscal year) equals the ending net assets, which must be the same as the net
assets at the end of the fiscal year reported on the statement of net assets. An example of the statement of revenues, expenses, and changes in net assets for proprietary funds is presented in Exhibit 4.8.

The statement of cash flows is a type of financial statement that has not been mentioned so far in this book. While the names are different, each of the financial statements described to this point can be categorized as either a balance sheet or an income statement. The cash flow statement is really a completely different type of statement that provides information about proprietary funds’ inflows and outflows of cash. Since the cash flow statement has received virtually no attention to this point, the following paragraphs will explain what the statement is and how it should be read. Exhibit 4.9 presents an example of proprietary funds’ statement of cash flows.

Taken From : Governmental Accounting Made Easy

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