Assignment No.2: Cash Flows and Financial Statements at Sunset Boards, Inc. Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Ted Marks, the founder of the company, is in charge of the design and sale of the surfboards, but his background is in surfing, not business. As a result, the company's financial records are not well maintained. The initial investment in Sunset Boards was provided by Tad and his friends and family. Because the initial investment was relatively small, and the company has made surfboards only for its own store, the investors haven't required detailed financial statements from Tad. But thanks to word of mouth among professional surfers, sales have picked up recently, and Ted is considering a major expansion. His plans include opening another surfboard store in Hawall, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. Tad's expansion plans require a significant investment, which he plans to finance with a combination of additional funds from outsiders plus some money borrowed from banks. Naturally, the new Investors and creditors require more organized and detailed financial statements than Tad has previously prepared. At the urging of his investors. Tad has hired financial analyst Jameson Reid to evaluate the performance of the company over the past year. After rooting through old bank statements, sales receipts, tax returns, and other records, Jameson has assembled the following Information: 2018 2019 Cost of goods sold $ 238,567 $ 285,890 Cash 31,546 33,686 Depreciation 62,145 72,573 Interest expense 12,980 16,389 Selling & Administrative 43,189 58,528 Accounts payable 56,978 64,321 Fixed assets 278,675 349,765 Sales 430,455 537,568 Accounts receivable 23,987 30,867 Notes payable 25,678 29,765 Long-term debt 140,567 159,765 Inventory 47,654 65,435 New equity 26,109