What is the basic structure of the statement of cash flows for proprietary funds?

The basic structure of the statement of cash flows for proprietary funds includes cash flows from operating, financing, and investing activities. This structure is consistent with the requirements set forth for proprietary funds, which operate similarly to private sector businesses.

In the context of proprietary funds, the operating activities section reflects cash received from customers and cash paid to suppliers and employees, showcasing the core operations of the fund. The financing activities section typically includes transactions related to borrowing and repaying debt, as well as any equity transactions, while the investing activities section involves cash transactions for the purchase and sale of physical assets (property, plant, and equipment) or investments.

This comprehensive view provided by including all three categories—operating, financing, and investing—allows users of the financial statements to analyze the cash flow dynamics of the fund thoroughly, demonstrating how cash is generated and utilized across different activities. It provides a complete perspective on the fund's financial health, decision-making, and operational efficiency, critical for both management and external stakeholders.