Which three financial statements are required for Proprietary Funds?

The three financial statements required for Proprietary Funds are the Statement of Net Position, the Statement of Revenues, Expenses and Changes in Fund Net Position, and the Statement of Cash Flows.

The Statement of Net Position provides a snapshot of the fund's financial position at a specific point in time, detailing assets, liabilities, and net position. This statement is crucial for understanding the overall financial health of the proprietary fund.

The Statement of Revenues, Expenses and Changes in Fund Net Position shows the financial results of the operations of the proprietary fund during a reporting period. It outlines how much revenue was generated, what expenses were incurred, and how these two factors contributed to changes in the fund’s net position, highlighting the fund's operational performance.

The Statement of Cash Flows is vital as it details the inflows and outflows of cash and cash equivalents, categorized into operating, investing, and financing activities. This statement helps assess the fund's liquidity and its ability to meet obligations as they come due.

Together, these three statements provide a comprehensive view of the financial performance and position of proprietary funds, which are used to account for activities similar to those of private sector businesses and require a more extensive reporting approach.