Cash Flows and Financial Statements at Sunset Boards, Inc. Sunset Boards. lnc, is a small company that manufactures and sel - mifboards in Malibu. Tad Marks, the founder of the coapany, is in charge of the design and sale of the surfboards, but his backgroand is in sarfing. not business. As a renals, the congary's firancial recorts are not well naiatained. The instial imvestment in Sunset Boards was prowided by Tad and his friends and family. Because the initial imestmeat nas relatively small, and the company has made surfooards only for its own store, the imventors haven't required detailed financial statements from Tad. But thanks to word of trouth among professional surfers, sales have picked up recently, and Tad is considering a major cxpansion. His plans inclade opening another surfooard store in Hawail, as well as supplying his "stick" (surfer lingo for boards) to other sellers. Tad's cxpansion plans require a significant trvestment, which he plans to finance with a combanation of additional finds from outsiders plus some noney borrowed from banks. Naturally, the new iavestors and creditcts sequire more organized and detailed financial statements than Tad has previously prepared, At the arging of his imvestors. Tad has hired financial ansfyst Christina Jennings to esaluate the performance of the company over the past year. After rooting through old bank statements, sales receipts, tax returns, and other records, Christina has assembled the folloming information: Sunset Boards currently pays out 40 percent of net income as dividends to Tad and the octher origimal iuvetark and it has a 21 percent tax rate. Yoe are Christina's assistant, and she has asked you to prepare the following 1. An incone statement for 2020 and 2021 . 2. A balance sheet for 2020 and 2021 . 3. Operating cash flow for each year. 4. Cashi flow from assets for 2021. 5. Cash flow to ereditors for 2021. 6. Caib flow to atockholdets for 2021. OUESTIONS 1. How wosid yoe describe Sunset Boards's cash fows for 2021 ? Wrice a brief tiscursion. 2. In leght of your discussion in the previous quection, what do you thank about Tod's expannion peant? Cash Flows and Financial Statements at Sunset Boards, Inc. Sunset Boards. lnc, is a small company that manufactures and sel - mifboards in Malibu. Tad Marks, the founder of the coapany, is in charge of the design and sale of the surfboards, but his backgroand is in sarfing. not business. As a renals, the congary's firancial recorts are not well naiatained. The instial imvestment in Sunset Boards was prowided by Tad and his friends and family. Because the initial imestmeat nas relatively small, and the company has made surfooards only for its own store, the imventors haven't required detailed financial statements from Tad. But thanks to word of trouth among professional surfers, sales have picked up recently, and Tad is considering a major cxpansion. His plans inclade opening another surfooard store in Hawail, as well as supplying his "stick" (surfer lingo for boards) to other sellers. Tad's cxpansion plans require a significant trvestment, which he plans to finance with a combanation of additional finds from outsiders plus some noney borrowed from banks. Naturally, the new iavestors and creditcts sequire more organized and detailed financial statements than Tad has previously prepared, At the arging of his imvestors. Tad has hired financial ansfyst Christina Jennings to esaluate the performance of the company over the past year. After rooting through old bank statements, sales receipts, tax returns, and other records, Christina has assembled the folloming information: Sunset Boards currently pays out 40 percent of net income as dividends to Tad and the octher origimal iuvetark and it has a 21 percent tax rate. Yoe are Christina's assistant, and she has asked you to prepare the following 1. An incone statement for 2020 and 2021 . 2. A balance sheet for 2020 and 2021 . 3. Operating cash flow for each year. 4. Cashi flow from assets for 2021. 5. Cash flow to ereditors for 2021. 6. Caib flow to atockholdets for 2021. OUESTIONS 1. How wosid yoe describe Sunset Boards's cash fows for 2021 ? Wrice a brief tiscursion. 2. In leght of your discussion in the previous quection, what do you thank about Tod's expannion peant
