Crystal Meadows of Tahoe Inc Case Solution

Posted by jeenniwill on April 25th, 2018

Crystal Meadows of Tahoe Inc Case Solution

Case Solution

A beginner’s case in cash flow evaluations and the organization of cash flow statements. Using the income statement of 1991, and the balance sheet of a ski resort company, the case gives insight to students that prepares them to compute direct as well as indirect cash flow statements. A redrafted account of a previous 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?

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jeenniwill
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