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FINANCIAL ANALYSIS

There are two financial analysis methods provided in our reserve studies:

Optimized Cash Flow Analysis

Straight-Line Depreciation Analysis


Definition: Cash Flow Analysis is the formal accounting method used to prove that a series of expenses can be funded over a specified time period. 

In the State of California, the required period is 30 years, so reserve cash flow analyses done in California are 30-year projections.

Straight-Line Depreciation Analysis calculates how much depreciation will occur in the next year for all reserve components (roofs, streets, pools, tennis courts, etc).  It is essentially a one-year projection.

Each analysis method is discussed with excerpts from our reserve studies in the following pages (click on the links above).

 

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Do you have further questions about Reserve Studies?    
Email  smc@west.net  or  ( 805-681-1575 x 22


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