Chapter Case Cash Flows and Financial Statements at Sunset Boards, Inc. Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company is in charge of the design and sale of the surfboards, but his background is in surting, not business. As a result, the company's financial records are not well maintained. Thenalinvestment 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 Tod is considering a major expansion. His plans include opening another wortoard store in Hawas, as well as supplying his sticks surferlingo for board to other sites Tad's expansion plans require a sticant investment, which he plans to finance with a combination of actional 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 Reed to evaluate the performance of the company over the past year Arrong through old bank statements, recepts, tax returns, and other records, jameson has assembled the following information 5330 Cost of goods HEN 633 12:554 15.10 13. Depec Dos capes Selland 4 4 20 9 NI Type here to search E S B N X Connect Class Business Finar X M MHE Reader End of Chapter 2 Case Stud, X + n.com/">epub/sn_30010#epubc%2F%2F62%5Bdata-uuid-aa1a82bbe58f4c6980777872562b3239%.501%284%2F2%5Bdata-uuid-101334. Q 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 2019 5.224.359 $250,251 32,372 34 394 Cort of goods Cash Depreciation Tuxpan Selling and administrative expenses Accounts while 63,334 71,584 15,750 13,753 44,121 57.586 57,220 63,479 279.419 Sales 345.500 $36.483 440122 Accounts receivable 22.939 29.55 Notes parable 26.079 Longterm debt 141040 158.360 Lavatory 43.272 66.44 0 Sunset Boards currently pays Out 50 percent of net income as dividends to Tad and the other onlinestors and has a 21 percent tax rate you are Jamesos assistant and he has asked you to prepare the following 1. An income statement for 2018 and 2019 2. A balance she o 8 R K K G Connect Class Business Fina X M MHE Reader End of Chapter 28 Case Stud cation.com/#/epub/sn_a0010#epubcfi%2F6%2F62%5Bdata-uuid-aa1a82bbe58f4c6980777872562b3239%5D1%2F4%2F2%5Bdata-uuid-1013 Accounts payable 57,220 63.479 Net fused assets 279,419 348. SOS Sales 440,122 536.483 Accounts receivable 22.939 29.755 Notes payable 26 079 28,474 Long term debt 1410-10 158,368 Inventory 48,272 66 244 New equity 0 27.157 Sunset Boards currently pays out 50 percent of net income as dividends to Tad and the other original investors and has a 21 percent tax rate. You are Jameson's assistant, and he has asked you to prepare the following: 1. An income statement for 2018 and 2019. 2. A balance sheet for 2018 and 2019. 3. Operating cash flow for each year. 4. Cash flow from assets for 2019. 5. Cash flow to creditors for 2019 6. Cash flow to stockholders for 2019 QUESTIONS 1. How would you describe Sunset Boards's cash flows for 20197 Write a brief discussion 2. In light of your discussion in the previous question, what do you think about Tod's expansion plans? O E arch 8 6 o P E R. Chapter Case Cash Flows and Financial Statements at Sunset Boards, Inc. Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company is in charge of the design and sale of the surfboards, but his background is in surting, not business. As a result, the company's financial records are not well maintained. Thenalinvestment 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 Tod is considering a major expansion. His plans include opening another wortoard store in Hawas, as well as supplying his sticks surferlingo for board to other sites Tad's expansion plans require a sticant investment, which he plans to finance with a combination of actional 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 Reed to evaluate the performance of the company over the past year Arrong through old bank statements, recepts, tax returns, and other records, jameson has assembled the following information 5330 Cost of goods HEN 633 12:554 15.10 13. Depec Dos capes Selland 4 4 20 9 NI Type here to search E S B N X Connect Class Business Finar X M MHE Reader End of Chapter 2 Case Stud, X + n.com/">epub/sn_30010#epubc%2F%2F62%5Bdata-uuid-aa1a82bbe58f4c6980777872562b3239%.501%284%2F2%5Bdata-uuid-101334. Q 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 2019 5.224.359 $250,251 32,372 34 394 Cort of goods Cash Depreciation Tuxpan Selling and administrative expenses Accounts while 63,334 71,584 15,750 13,753 44,121 57.586 57,220 63,479 279.419 Sales 345.500 $36.483 440122 Accounts receivable 22.939 29.55 Notes parable 26.079 Longterm debt 141040 158.360 Lavatory 43.272 66.44 0 Sunset Boards currently pays Out 50 percent of net income as dividends to Tad and the other onlinestors and has a 21 percent tax rate you are Jamesos assistant and he has asked you to prepare the following 1. An income statement for 2018 and 2019 2. A balance she o 8 R K K G Connect Class Business Fina X M MHE Reader End of Chapter 28 Case Stud cation.com/#/epub/sn_a0010#epubcfi%2F6%2F62%5Bdata-uuid-aa1a82bbe58f4c6980777872562b3239%5D1%2F4%2F2%5Bdata-uuid-1013 Accounts payable 57,220 63.479 Net fused assets 279,419 348. SOS Sales 440,122 536.483 Accounts receivable 22.939 29.755 Notes payable 26 079 28,474 Long term debt 1410-10 158,368 Inventory 48,272 66 244 New equity 0 27.157 Sunset Boards currently pays out 50 percent of net income as dividends to Tad and the other original investors and has a 21 percent tax rate. You are Jameson's assistant, and he has asked you to prepare the following: 1. An income statement for 2018 and 2019. 2. A balance sheet for 2018 and 2019. 3. Operating cash flow for each year. 4. Cash flow from assets for 2019. 5. Cash flow to creditors for 2019 6. Cash flow to stockholders for 2019 QUESTIONS 1. How would you describe Sunset Boards's cash flows for 20197 Write a brief discussion 2. In light of your discussion in the previous question, what do you think about Tod's expansion plans? O E arch 8 6 o P E R