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Check All That Apply The statement of cash flows for a proprietary fund is exactly the same as the statement of cash flows for a for-profit organization. A proprietary fund prepares a statement of net position; a statement of revenues, expenses, and changes in fund net position; and a statement of cash flows. The statement of revenues, expenses, and changes in fund net position can be compared to a for-profit organization's income statement One difference is that a for-profit organization does not net items like bad debts from the related revenue as a proprietary fund does. A Proprietary fund's statement of net position can be compared to a for-profit's balance sheet. The format for the statement of net position differs from a balance sheet, largely because there is no equity in a proprietary fund. Instead of using the basic accounting equation format where total assets equal total liabilities plus equity, the statement of net position subtracts liabilities and deferred inflows of resources from assets and deferred outflows of resources to arrive at an ending number called "net position." Furthermore, net position is reported in three, components: net investment in capital assets, restricted, and unrestricted. The GASB requires the indirect approach for preparing the statement of cash flows, and, instead of three categories (operating, investing, and financing), a proprietary fund reports four categories: operating, noncapital financing, capital and related financing, and investing

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