Cash flows at Warf Computers. Inc

Founded 15 years ago by Nick Warf and his friends, over the years the group invested small amounts in terms of both equity and short- and long-term debt. Comp developed new keyboard, needs outside financing in the form of new equity investments and bank loans.

1. Preparethe financial statement of cash flows and the accounting statement of cash flows;

2. How would you describe Warf Computers cash flows?

3. which cash flow statement more accurately describes the cash flows at the company?

4. In light of your previous comments, comment on Nick's expansion plans.

Balance Sheet and Income Statement are attached in excell

Warf Computers Balance 2015 2014 Current assets Cash and equivalents Accounts Receivable Inventories Other Total Current Assets Fixed Assets Property,Plant and equipment Less Accumulated deprecition Net Property, Plant and Equipment Intangible Assets and othes Total Fixed assets Total Assets $452.00 $716.00 $641.00 $92.00 $391.00 $668.00 $663.00 $78.00 $1,901.00 $1,800.00 $4,148.00 $1,340.00 $3,179.00 $1,092.00 $2,808.00 $2,087.00 $793.00 $709.00 $3,601.00 $2,796.00 $5,502.00 $4,596.00 arf Computers Balance Sheet 2015 2014 $519.00 $485.00 $247.00 $401.00 $766.00 $886.00 Long term liabilities Deferred taxes Long term debt Total long term liabilities $330.00 $1,179.00 $159.00 $1,148.00 $1,509.00 $1,307.00 Stockholders equity Preferred stock Common stock Capital Surplus Accumulated retained earnings Less treasury stock Total Equity $21.00 $126.00 $794.00 $2,478.00 -$192.00 $21.00 $126.00 $779.00 $1,603.00 -$126.00 $3,227.00 $2,403.00 $5,502.00 $4,596.00 Current Liabilities Accounts payable Notes Payable Accrued expenses Total Current Liabilities Total liabilities and shareholders equity Warf Computers Income Statement Sales Cost of goods sold Selling, general, and administrative expense Depreciation Operating income Other income EBIT Interest expense Pretax income Taxes Current: $467 Deferred: $130 Net income Dividends Retained earnings 2015 $7,557.00 $4,456.00 $848.00 $248.00 $2,005.00 $75.00 $2,080.00 $137.00 $1,943.00 $776.00 $605.00 $171.00 $1,167.00 $292.00 $875.00