Hello, I am stock with the question in regards to doing a statement of cash flows for contempri homes According to issues in accounting education Vol 29,No 1 2014, A Practice Based Statement of Cash Flows Learning Experience An Initial Public Offering for Contempri Homes , the requirement is to do a statement of cash flows for the fiscal year 2013 I don't know how to account for the Non cash portion of pension expense and Non cash compensation expense associated with issuance of stock options accounted for under fair value method as well as the combination of depreciation and amortization expense I know I should take the difference between the years, but I don't know the portion I should account for The case gives us the accumulated depreciation for the 2012 and 2013 and I got the difference as well as including depreciation on asset retirement obligation As for amortization, I added back the amortization of bond discount which is given in the supplement document with the amount of $96 1 and also the amortization expense for prior service costs I don't what I'm doing wrong, but it does not balance Contempri Homes, Inc Consolidated Statement of Cash Flowr dollars in thousands, except share amounts AS Oflll 30, 2013 Iihwhrparlcm l lash Flaws for Dperatingctivies Not Iooomo loos Adjushnenlsmreoondlenetincome lossltonetcasb prewidedby usedin operatingacvies Depreciation and amortimtion expense oomonooloofproportmploorondoooipmoor 3 11351 poro'on ofponoionoxponoo goon ooo oohodolo H Hon cash interest on asset retirement obligations Hon cash compensation expense associated with 'msuance ofsbockoptions accounted for under fair 1il'aluJe method Changesinoperatingasseisandliabilies Restrictedcasbfrom customersdeposrls 8,850 00 Accounls Receivable net of allowance for doubtful accounls 631 00 Realestatebeldfor developmentandresale 11835 00 Wteoofoodwill 400 00 Deferredcbarges 400 00 Accounls Payable and accrued liabililies 2,630 00 Deferred revenue 4,900 00 Customerdeposils 130 00 Netcasb provided by used in operating activilies 45,322 50 Casbawsfromluvestingcvies Wormmplmmeqmm Proceeds'omsaleofpropertyplantand equipment $ 396 00 acuoitios $ (11,533 00) Casbaw'omFinancingActivies Repaymentofmortgageloans Borrowings from other bond obligations netof discount Commonshockcasbdividendspaid Netcasbprovidedbysedin nancing 3,133 00 1,313 00 3,334 00 Netincrease decrease incasbandcasbequivalenls Cashandcasbequivalenlsatlebeginniugofleyear l asllamdcashequi'il'alJenlsattheeanoi'theliIIear Contempri Homes Inc Property, Plant 8 Equipment Capital Expenditures and Depreciation Expense (Dollars in thousands, except shale amounts) Ell will FIE H Statement hfullut'llll $051013 $051012 ME in 5 Gross bodl value $50,000 $33,000 512 000 Accllllulatled depreciation $10,359 $8,222 52,137 Net m value $35,641 $23,773 59,863 Elba I cf Gil (Ins) of End Amt kart lm'atim Price Gross Ammlated Depreciatim NBV life Small ladder (Juliette $37 $140 $77 533 large badd'm m 5124 210 116 94 Ccl'lstluctiul'l VEIIiCIE NV 515 76 6B 8 Excavation equipment Ridl'nond 51m 342 308 3H Grading a'uilm'la'lt Rid Tull $90 165 143 17 $396 $933 5717 $216 Elba I cf Gil III Sb PIIIZEEdS run sale 5396 Gross nil Valle 93 I455 accumulated depreciation 717 Net book value 216 Gain (II 5 on sale $180 had lath tAm II Gites my, plant lawful alt Miami inmiatim Begiming balarlce $38,000 $8,222 begimirlg balance Dep Expere iml liapleciatim m Wrtitns mphal expellfrtlll 11369 93 Disposal 717 235 asaset retirelrlarlt chligatim Additions asset retirement chligation 964 $10,359 Ending balance Ending balance $50,000 Contempli Homes Inc Bond Placement (dollars in thousands, except shale amounts WI of IRIII mm Stated Rate 7 Effective (I'narllet) Rate 9 PEI'iIZIiS 10 Primipal 750 W ufrl'imipal (9 dim rate 10 5 $316 30 Wofmlimidimmmlws $336 90 intenst $750 x 795 52 5 Disooll'lt (596 30 km Td' Eaiue IIIE'EI W kite Cash Paid il'liZB'EFt Equals Discull'lt Mutizlad Canyn'mlt 313012314 52 5 53 3 33 660 1 3130 2315 52 5 59 4 3 9 657 650m16 525 60 75 6745 650ml 52 5 93 7 3 2 682 7 650mm SD 61 4 33 691 613012013 SD Eu 9 7 701 4 650m 5D 3 1 10 6 712 6130,2021 525 64 1 11 6 723 6 6130,2022 525 65 1 12 6 736 2 313012323 52 5 663 13 3 750 525 521 1 95 1 Ballard lather t Acculllt Other Nuts payable and Iol'g telln Iiabiliti $654 00 Beg Balance $653 70 Blmds net of dim Asset Retirement Oblig $953 90 Liability Asset Retirement Oblig 596 41) Liability Accretion Wdbalance U'lU'lU'IE Pmbaseofproperljnplantandeqllipment S 1 1,969 38,000 2012 50,000 2013 12,000 964 lessilssetreremmtobligann HHHHH mmormmmmmm 11,036 933 plus disposals mhmmm 5tep1 iel lrl ltl'EAROalliAssetatitsPn5ent Value futll'e value of MO disc Rate Nperillis W of M0 Stepzcdulnequeniaunon'lemm tut llassetcustatPV useful life (in years liapleciatim per year mammgmm ed ad E llll'BEit acuetim liabil'g balall e Contempli Homes Inc Asset Renement Obligation (dollars in thousands, except shale amounts 5963 90 1 96 4 1060 2 2 106 1166 3 3 116 6 1267 9 4 126 3 1411 2 5 141 1 1552 3 6 155 2 1707 5 7 170 6 16763 6 167 6 20661 9 206 6 2272 7 10 $227 30 $2,500 00 WWW M0 asset Alli) liability H111 Bitl'ytn ml the asset and liability fw asset l'etilBrBlt diligatim This IS a llIlI IIlSl'I aliiititl'l in misty, plan equipment mimic 1 expanse acumlulated mimic 1 Each year t 10 yuan Imam erltl'ytn l'elzlrlzl lhfll'eciam expema wasmt letiren'lant lilligatim lnt'et ellpa'lse M0 liabilityr Imam erltl'ytn l'elzlrlzl intent expense for asset retirement obligation This is rm cad'l intenst expense Debit $96110 Credit

Question

Hello, I am stock with the question in regards to doing a statement of cash flows for contempri homes According to issues in accounting education Vol 29,No 1 2014,  A Practice Based Statement of Cash Flows Learning Experience  An Initial Public Offering for Contempri Homes ,  the requirement is to do a statement of cash flows for the fiscal year 2013  I don't know how to account for the Non cash portion of pension expense and Non cash compensation expense associated with issuance of stock options accounted for under fair value method as well as the combination of depreciation and amortization expense  I know I should take the difference between the years, but I don't know the portion I should account for  The case gives us the accumulated depreciation for the 2012 and 2013 and I got the difference as well as including depreciation on asset retirement obligation  As for amortization, I added back the amortization of bond discount which is given in the supplement document with the amount of $96 1 and also the amortization expense for prior service costs  I don't what I'm doing wrong, but it does not balance  Contempri Homes, Inc  Consolidated Statement of Cash Flowr  dollars in thousands, except share amounts  AS Oflll 30, 2013 Iihwhrparlcm  l lash Flaws for Dperatingctivies  Not Iooomo  loos  Adjushnenlsmreoondlenetincome  lossltonetcasb prewidedby usedin  operatingacvies  Depreciation and amortimtion expense oomonooloofproportmploorondoooipmoor  3 11351  poro'on ofponoionoxponoo goon ooo oohodolo H Hon cash interest on asset retirement obligations Hon cash compensation expense associated with 'msuance ofsbockoptions accounted for under fair 1il'aluJe method Changesinoperatingasseisandliabilies Restrictedcasbfrom customersdeposrls 8,850 00 Accounls Receivable net of allowance for doubtful accounls 631 00 Realestatebeldfor developmentandresale  11835 00  Wteoofoodwill 400 00 Deferredcbarges 400 00 Accounls Payable and accrued liabililies 2,630 00 Deferred revenue  4,900 00  Customerdeposils  130 00  Netcasb provided by  used in  operating activilies 45,322 50 Casbawsfromluvestingcvies Wormmplmmeqmm Proceeds'omsaleofpropertyplantand equipment $ 396 00                                      acuoitios $ (11,533 00) Casbaw'omFinancingActivies Repaymentofmortgageloans Borrowings from other bond obligations netof discount Commonshockcasbdividendspaid Netcasbprovidedbysedin  nancing  3,133 00   1,313 00   3,334 00  Netincrease decrease incasbandcasbequivalenls Cashandcasbequivalenlsatlebeginniugofleyear l  asllamdcashequi'il'alJenlsattheeanoi'theliIIear Contempri Homes Inc Property, Plant 8  Equipment  Capital Expenditures  and Depreciation Expense (Dollars in thousands, except shale amounts) Ell will  FIE H Statement  hfullut'llll  $051013 $051012 ME in 5 Gross bodl value $50,000 $33,000 512 000 Accllllulatled depreciation $10,359 $8,222 52,137 Net m value $35,641 $23,773 59,863 Elba I cf Gil (Ins)   of End Amt  kart lm'atim Price Gross Ammlated Depreciatim NBV life Small ladder  (Juliette $37 $140 $77 533 large badd'm m 5124 210 116 94 Ccl'lstluctiul'l VEIIiCIE NV 515 76 6B 8 Excavation equipment Ridl'nond 51m 342 308 3H Grading a'uilm'la'lt Rid Tull  $90 165 143 17 $396 $933 5717 $216 Elba I cf Gil III Sb PIIIZEEdS  run sale 5396 Gross  nil Valle  93 I455  accumulated depreciation  717 Net book value 216 Gain (II 5  on sale $180 had lath  tAm II  Gites my, plant   lawful alt Miami inmiatim Begiming balarlce $38,000 $8,222 begimirlg balance Dep  Expere iml  liapleciatim m Wrtitns  mphal expellfrtlll 11369 93 Disposal  717 235   asaset retirelrlarlt chligatim Additions  asset retirement chligation 964 $10,359 Ending balance Ending balance $50,000 Contempli Homes Inc  Bond Placement (dollars in thousands, except shale amounts  WI of IRIII mm Stated Rate 7  Effective (I'narllet) Rate 9  PEI'iIZIiS 10  Primipal 750  W ufrl'imipal (9  dim rate  10 5  $316 30 Wofmlimidimmmlws  $336 90 intenst $750 x 795   52 5 Disooll'lt (596 30 km Td'  Eaiue IIIE'EI W  kite Cash Paid il'liZB'EFt Equals  Discull'lt Mutizlad Canyn'mlt 313012314 52 5 53 3 33 660 1 3130 2315 52 5 59 4 3 9 657 650m16 525 60 75 6745 650ml  52 5 93 7 3 2 682 7 650mm SD 61 4 33 691 613012013 SD Eu 9 7 701 4 650m 5D 3 1 10 6 712 6130,2021 525 64 1 11 6 723 6 6130,2022 525 65 1 12 6 736 2 313012323 52 5 663 13 3 750 525 521 1 95 1 Ballard lather t Acculllt  Other Nuts payable and Iol'g telln Iiabiliti $654 00 Beg  Balance $653 70 Blmds net of dim Asset Retirement Oblig  $953 90 Liability Asset Retirement Oblig  596 41) Liability Accretion Wdbalance U'lU'lU'IE Pmbaseofproperljnplantandeqllipment S  1 1,969  38,000 2012 50,000 2013  12,000  964  lessilssetreremmtobligann HHHHH   mmormmmmmm  11,036   933  plus disposals mhmmm 5tep1  iel lrl ltl'EAROalliAssetatitsPn5ent Value  futll'e value of MO disc  Rate Nperillis W of M0 Stepzcdulnequeniaunon'lemm tut llassetcustatPV useful life (in years  liapleciatim per year mammgmm ed ad  E llll'BEit acuetim liabil'g balall e Contempli Homes Inc Asset Renement Obligation (dollars in thousands, except shale amounts  5963 90 1 96 4 1060 2 2 106 1166 3 3 116 6 1267 9 4 126 3 1411 2 5 141 1 1552 3 6 155 2 1707 5 7 170 6 16763 6 167 6 20661 9 206 6 2272 7 10 $227 30 $2,500 00 WWW M0 asset Alli) liability  H111  Bitl'ytn ml  the asset and liability fw asset l'etilBrBlt diligatim This IS a llIlI IIlSl'I aliiititl'l in  misty, plan   equipment mimic 1 expanse acumlulated mimic 1 Each year t 10 yuan  Imam  erltl'ytn l'elzlrlzl lhfll'eciam expema   wasmt letiren'lant lilligatim lnt'et ellpa'lse M0 liabilityr Imam  erltl'ytn l'elzlrlzl intent expense for asset retirement obligation  This is rm cad'l intenst expense Debit $96110 Credit

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