A statement of cash flows helps answer all of the following: 1. What explains the changes in the cash account?
2. Where does a company spends its cash?
3. How can the company improve its operations?
4. How does a company receives its cash?
5. What are the changes in the non-cash accounts?

On december 31, 2013, coronado company issues 173,000 stock-appreciation rights to its officers entitling them to receive cash for the difference between the market price of its stock and a pre-established price of $10. the fair value of the sars is estimated to be $5 per sar on december 31, 2014; $2 on december 31, 2015; $10 on december 31, 2016; and $8 on december 31, 2017. the service period is 4 years, and the exercise period is 7 years. prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.