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