Crystal Meadows of Tahoe

Crystal Meadows of Tahoe, Inc Introduction Crystal Meadows of Tahoe (CMOT) is a holding company for dickens different ski mendings. The majority of revenues from this company come from the change of lift tickets, ski rentals, skiing lessons, and food and beverage gross revenue; revenues be also primarily generated during the winter months. CMOT has recently partnered with Toiyabe remedy Company for the development of a year-round ski resort in the Tahoe area, and have invested $5,300,000 in the venture. CMOT and Toiyabe plan to begin look of the resort in 1992. CMOT also plans to invest $8,200,000 in their twain ski resorts (Lake Ridge and Crystal Meadows) in 1992. During 1991, CMOT saw real positive increases to engagement income and shareholders equity. This year was prodigious in terms of operations, bringing CMOT the most skier days in the companys history. CMOT is planning some of import capital letter investments in 1992. An abridgment of their income statements, balance shreds, and cash flow are helpful in guiding the companys proposed investments. What does the synopsis of cash flows reveal about CMOT that was not evident from analysis of the income statements and balance sheets? The income statement for CMOT for 1991 has the company showing a net income of $1,418,000.

This figure is $747,000 higher than the previous year at $671,000 and to a greater extent than doubles CMOTs net income from 1990 to 1991. CMOTs balance sheet for 1991 indicates that the company had $7,585,000 in retained earnings, which is $1,306,000 higher than 1990s $6,279,000. both(prenominal) provide bottom lines that make the CMOT appear to be useful and in a growth cycle. An analysis of cash flows shows that CMOT has significant cash outflows for capital investments in PP&E, namely the purchase of refreshing snow making equipment and other improvements. These outflows are nearly equal to cash taken in over the same period. In 1991, CMOT had $5,425,000 in net cash provided by operating activities. During the same... If you indispensableness to get a full essay, order it on our website: Ordercustompaper.com

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