Please answer 4 , 5 and 6 and question 1 and 2

MINICASE Cash Flows and Financial Statements at Sunset Boards, Inc. company that manufactures and sells After rooting through old bank statements, sales receipts other records, Christina has assembled the 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 surfing, not business. As a result, the compa- ny's financial records are not well maintained. tax returns, and following information: The initial investment 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 Cash financial statements from Tad. But thanks to word of mouth Depreciation among professional surfers, sales have picked up recently, and Interest expense Tad is considering a major expansion. His plans include open-Selling and administrative ing another surfboard store in Hawaii, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. 2017 2018 $255,605 36,884 72,158 15,687 ministrative50,268 26,186 318,345 501,441 26.136 29,712 160,689 50,318 0 Cost of goods sold $322,742 55,725 81,559 17,980 65,610 44,318 387,855 611,224 33,901 32,441 175,340 Accounts payable Tad's expansion plans require a significant investment, Net fixed assets which he plans to finance with a combination of additional Sales funds from outsiders plus some money borrowed from banks. Accounts receivable Naturally, the new investors and creditors require more org Notes payable nized and detailed financial statements than Tad has previously prepared. At the urging of his investors, Tad has hired finan-on cial analyst Christina Wolfe to evaluate the performance of the Long-term debt Inventory New equity 67,674 19,500 company over the past year. 48 PART1 Overview of Corporate Finance QUESTIONS 1. How would you describe Sunset Boards's cash fl Sunset Boards currently pays out 40 percent of net income It has a 21 percent tax rate. You are Christina's assistant, and she has asked you to prepare the following: I. An income statement for 2017 and 2018. 2. A balance sheet for 2017 and 2018. 3. Operating cash flow for each year. 2018? Write a brief discussion. 2. In light of your discussion in the previous question, what do you think about Tad's expansion plans? 4. Cash flow from assets for 2018. 5. Cash flow to creditors for 2018. 6. Cash flow to stockholders for 2018