Crystal Meadows of Tahoe Inc Case Solution

Case Solution

A dent case in earnings analysis as well as the preparation of claims of cash flows. Using the 1991 earnings statement and balance sheet inside a ski resort company, the case provides more details which allows students to arrange both an instantaneous plus an indirect statement of cash flows. A rewritten type of a young case.

Excel Calculations

Yes

Questions Covered

Prepare a statement of cash flows for CMOT for fiscal year 1991 using the indirect method. Organize the cash flows into cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Does your statement explain the change in cash and cash equivalents between the beginning and end of 1991?

Prepare a schedule of cash flows from operations using the direct method. Is this schedule more or less informative about the company's operations than the one prepared by the indirect method in Question 1?

What does the analysis of cash flows reveal about CMOT that was not evident from analysis of the income statements and balance sheets?Will Crystal Meadows of Tahoe be able to finance its planned 1992 capital investment program with cash provided by operations during that year?