Corporate Finance Case Analysis
Cash Flow and Financial Statements at Madry, Inc. Madry is a small company that manufactures and sells surfboards in Rodway. Mr. Michael, the founder of the company, is in charge of the design and sale of surfboards, but his background is in surfing, not business. As a reserds are not well maintained. The initial investment in Madry inc. was provided by Michael and his friends and family. Because the initial investment was relatively surfboard store in Hawaii, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. Michael's expansion plans require a significant investment, has a 30 percent tax rate. You are Christina's assistant, and she has asked you to prepare the following: QUESTION 1 The company currently pays out 40 percent of net income as dividends to Michael and the other original investors, and it has a 30 percent tax rate. You are Sara's assistant, and she has asked you to explore the financial statements of the company reports to prepare the following: Part 1 1. An income statement for 2020 and 2021 . 2. A balance sheet for 2020 and 2021 . 3. Operating cash flow for each year. 4. Cash flow from assets for 2021. 5. Cash flow to creditors for 2021. Part II 1. In light of your discussion in the previous question, critically analyze what will be Michael's expansion plans. 2. How would you describe Sunset Boards' cash flows for 2021? Critically analyze the company's position. Cash Flow and Financial Statements at Madry, Inc. Madry is a small company that manufactures and sells surfboards in Rodway. Mr. Michael, the founder of the company, is in charge of the design and sale of surfboards, but his background is in surfing, not business. As a reserds are not well maintained. The initial investment in Madry inc. was provided by Michael and his friends and family. Because the initial investment was relatively surfboard store in Hawaii, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. Michael's expansion plans require a significant investment, has a 30 percent tax rate. You are Christina's assistant, and she has asked you to prepare the following: QUESTION 1 The company currently pays out 40 percent of net income as dividends to Michael and the other original investors, and it has a 30 percent tax rate. You are Sara's assistant, and she has asked you to explore the financial statements of the company reports to prepare the following: Part 1 1. An income statement for 2020 and 2021 . 2. A balance sheet for 2020 and 2021 . 3. Operating cash flow for each year. 4. Cash flow from assets for 2021. 5. Cash flow to creditors for 2021. Part II 1. In light of your discussion in the previous question, critically analyze what will be Michael's expansion plans. 2. How would you describe Sunset Boards' cash flows for 2021? Critically analyze the company's position
