Students are presented with the task of constructing a U.S. GAAP statement of cash flows and performing financial and non-financial analysis to assist a decision about whether the company should undertake an IPO. They will assume the role of accountant for Contempri Homes, Inc., a fictitious producer of modular homes in various regions of the U.S. housing market. The case provides the company's most recent financial statements (income statement, balance sheet, and statement of changes in stockholders' equity), financial disclosures for the current fiscal year, and selected financial and operating data dating back to the company's fiscal year ended June 30, 2010.

In the next section, we discuss the learning objectives, followed by a detailed discussion of the solution. We then provide suggested grading guidelines and some concluding remarks.

The purpose of this case is to enrich students' understanding of the preparation and use of the statement of cash flows,...

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