I am having trouble figuring out tasks 2-6, could you please help me understand the steps to doing this?

50 PART 2 Understanding Financial Statements and Cash Flow 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 2015 2016 founder of the company, is in charge of the design and Cost of goods sold $203,963 $257,528 sale of the surfboards, but his background is in surfing, Cash 29,429 not business. As a result, the company's financial re- Depreciation 57,576 31,267 65,076 cords are not well maintained. Interest expense 12,530 Selling and administrative 40, 110 14,345 The initial investment in Sunset Boards was pro- 52,351 vided by Tad and his friends and family. Because the ini- expenses Accounts payable 52,015 57,708 tial investment was relatively small, and the company Net fixed assets 254,017 has made surfboards only for its own store, the investors Sales 400, 111 316,825 haven't required detailed financial statements from Tad. Accounts receivable 20,854 487,712 27,050 But thanks to word of mouth among professional surf- Notes payable 23,708 25,885 ers, sales have picked up recently, and Tad is consider- Long-term debt 128,218 143,971 43,884 ing a major expansion. His plans include opening Inventory 60,222 New equity 0 24,192 another surfboard store in Hawaii, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. Tad's expansion plans require a significant invest- Sunset Boards currently pays out 50 percent of net in- ment, which he plans to finance with a combination of come as dividends to Tad and the other original inves- additional funds from outsiders plus some money bor- tors, and has a 20 percent tax rate. You are Jameson's rowed from banks. Naturally, the new investors and assistant, and he has asked you to prepare the creditors require more organized and detailed financial following: statements than Tad has previously prepared. At the 1. An income statement for 2015 and 2016. urging of his investors, Tad has hired financial analyst 2 . Jameson Reid to evaluate the performance of the com- A balance sheet for 2015 and 2016. 3 . pany over the past year. Operating cash flow for each year. After rooting through old bank statements, sales re- 4 . Cash flow from assets for 2016. ceipts, tax returns, and other records, Jameson has as- 5 . Cash flow to creditors for 2016. sembled the following information: 6 . Cash flow to stockholders for 2016. QUESTIONS 1. How would you describe Sunset Boards' cash flows for 2016? Write a brief discussion. 2. In light of your discussion in the previous question, what do you think about Tad's expansion plans