The statement of change in net debt is unique to public sectorfinancial reporting. Assume that you are a financial accountantwith the Municipality of Walton. Prepare the 20X5/X6statement of change in net debt using the informationbelow. (Note: prepare only the current-year column, notthe comparative numbers.)

MUNICIPALITY OF WALTON Consolidated statement of financial position March 31, 20X6, with comparative figures for 20X5 (in $000s)
	20X6	20X5
Financial assets
Cash	95,263	87,412
Accounts receivable	24,812	18,776
Taxes receivable	62,477	78,943
Investments	59,110	46,545
	241,662	231,676
Liabilities
Accounts payable	90,993	97,863
Deferred revenue	11,735	9,745
Employee future benefits	127,571	131,552
Long-term debt	364,747	381,001
	595,046	620,161
Net debt	(353,384)	(388,485)
Non-financial assets
Tangible capital assets	356,442	364,710
Inventory	21,233	25,641
Prepaid expenses	9,542	10,301
	387,217	400,652
Accumulated surplus (deficit)	$ 33,833	$ 12,167

MUNICIPALITY OF WALTON Consolidated statement of operations For the year ended March 31, 20X6, with comparative figures for20X5 (in $000s)
	20X6	20X5
Revenue
Taxation	512,098	487,752
User fees and charges	104,752	96,321
Government grants	37,059	45,278
Investment income	2,474	6,120
Penalties and fines	24,714	20,144
	681,097	655,615
Expenses
Protective services	189,216	182,111
Transportation services	208,511	200,463
Environmental services	61,203	54,125
Recreation and cultural services	76,610	65,875
Educational services	90,220	93,633
Urban development services	33,671	26,987
	659,431	623,194
Annual surplus (deficit)	21,666	32,421

Additional information:

• The annual surplus includes $14,718 in amortizationexpense.
• Tangible capital assets were purchased for $6,450.
• There were no TCA disposals in the year.