Crystal Meadows

Statement of Cash Flows

Grigorios Krousiarlis
 Crystal Meadows
Cash Flow From Operations = NI + Depr + X + Changes in NOWC
Net Income 1.418
Adjustment for non cash Items.000$
- Depreciation 2.637 Income
- Gain on Sales of Fixed Assets.000$
329.000 Statement
Changes in NOWC $
Short-term Assets:
- Accounts Receivable
- Prepaid Exp. 59.
000
6.000
Short-term Liabilities: $$
- Accounts Payable Balance
- Deferred Income 245
Sheet
- etc….(other current Liabilities)
.00
244
- CA & CL
0$
.00
179.
0$
000$

NOWC = Net Operating Working Capital (Changes in Inventory, Accounts Receivable, Accounts
Payable)
 Crystal Meadows

Cash Flow From Investing = Changes in LT Assets

Changes in LT Assets:
- Property, Plant & Equipment5.1
46.
- Investment in Dev. Stage Resort
416
000
$.00
- Notes Receivable Collected 485
0$ Balance Sheet
.00
- Sale of Real Estate 0$
110
- Long Term
- Etc. .00 Assets
0$

TOTAL: 6.157.000$
 Crystal Meadows

Cash Flow From Financing = Changes in LT Liabilities &

Equity

Changes in LT Liabilities & Equity:

- Borrowed LT Debt (171.000)
$695.000
- Retired LT Debt
$
- Dividends Paid 112.000$
Balance Sheet:
- Issuance of new Shares33.000$ - LT Liabilities
(Common Stock) & Equity
 Chrystal Meadows
Opening Balance Cash
= 3.272.000$
Cash Flow From Operations = NI + Depr + X + Changes in NOWC
= 3.781.000$
Cash Flow From Investing = Changes in LT Assets
= 24.971.000$
Cash Flow From Financing = Changes in LT Liabilities &
Equity
= 669.000$
Ending Balance Cash
= 4.097.000$
 Crystal Meadows
Cash Flow From Operations = NI + Depr + Changes in NOWC
Operations X 1,000
Net Income 1.997e+06
Depreciation 2.637e+06
Gain on Sale of Land 329000
Accounts Receivable 59000
Prepaid Expenses 6000
Accounts Payable 245000
Accrued Land Rent 19000
Accrued Compensation 152000
Deferred Revenues 244000
Income Taxes Payable -100000
Deferred Income Tax -479000
Other Deferred Credits 216000
Other Accrued Liabililties 179000
Cash Flow From Operations 5.504.000$
 Crystal Meadows
Gain on Sale of Land

From its Real Estate, CMOT sold Land that cost 221.000$,
resulting in a Gain on Sale of Land of 329.000$ Of the total sales
price, 110.000$ was received in Cash, and the remainder
(221.000 + 329.000– 110.000 = 440.000$) in the form of a Notes
Receivable.

Debit Credi
t
Cash 110.000$ Land 221.000$
Notes Receivable 440.000$ Gain on Sale
550.000$ 329.000$ 550.000$
......
 Crystal Meadows
Cash Flow From Investing = Changes in LT Assets
Investing (X 1,000)

Property, Plant & Equipm. 5.146.000$

Investment in Dev. Stage Resort 416.000$

Loan (Notes Receivable) 485.000$

Notes Receivable Collected 485.000$

Sale of Real Estate 110.000$

Capital Expenditure 16.000$

Other Assets 23.000$

Cash Flow from Investing 6.681.000$

 Crystal Meadows
CMOT purchased Plant & Equipment with a total cost
of 5.146.000$ during 1991.

Result on Cash Flow Statement:

Property, Plant & Equipment : 5.146.000$

On the Balance Sheet: P & E increases by 2.509.000$

(which implies a use of Cash).

On the Income Statement: Depreciation & Amortization

(1991) = 2.637.000$
2.637.000 + 2.509.000 = 5.146.000$
 Crystal Meadows
Cash Flow From Financing: Changes in LT Liabilities & Equity

Financing X 1,000

Borrowed Long-term Debt (171.000$)

Repaid Long-term Debt 695.000$

Dividends Paid 112.000$

Issuance New Common Stock 33.000$

Cash Flow from Financing 669.000$

 Crystal Meadows

CMOT borrowed an additional 3.344.000$ in

Long-Term Debt during 1991. Some of the
proceeds were used to repay 2.820.000$ in
Long-Term Debt that had been outstanding at
the beginning of the year.

Effect on Cash Flow Statement:

Borrowed Long -Term Debt 3.344.000$
Repaid Long -Term Debt (2.820.000$)
524.000
$
 Crystal Meadows

Opening Balance
+ Movements in Cash flows from Ops, Inv, Fin
= Ending Balance

Total Changes on Cash Flow Statement

equal …..

Cash & Cash Equivalents changes on

Balance Sheet equal 825.000$

Ops = Operations, Inv = Investments , Fin =

Financing
 Crystal Meadows

Recommendations and Conclusions

 CMOT Direct Method CFFO
Received:
Cash Received from customers: 25.446.000$
Interest on Investments : 279.000$
Commercial Property Rental: 274.000$
Other cash receipts: 26.000$
Paid:
Salaries and wages: (8.911.000$)
Land Rentals: (1.428.000$)
Interest paid: (1.073.000$)
Other operating&miscellaneous expenses:
(9.188.000$)
Net Cash Provided CFFO: 5.425.000$

CFFO = Cash Flow From