Sunset Board currently pays out 40% of net income as dividends to Tad and the other original investors, and it has a 30% tax rate.You are Christina's assistant, and she has asked you to prepare the following:

1. An income statement for 2014 and 2015

2. A balance sheet for 2014 and 2015

3. Operating cash flow for each year

4. Cash flow from assets for 2015

5. Cash flow to creditors for 2015

6. Cash flow to stockholders for 2015

7. How would you describe sunset boards cash flow for 2015? Write a brief discussion.

8. In light of your discussion in the previous question, what do you think about Tad's expansion plans?

Financial Statements at Sunset Boards, Inc. Cash flows Sunset Boards is a small company that manufactures and sells financial analyst Christina Wolfe to evaluate the performance surfboards in Malibu. Tad Marks, the founder of the company of the company over the past year. After rooting through old bank statements, sales receipus. is in charge of the design and sale of the surfboards, but his background is in surfing, not business. As a result, the compa tax returns, and other records, Christina has assembled the fol lowing information: ny's financial records are not well maintained The initial investment in Sunset Boards was provided by 2015 2014 and his friends and family. Because the initial invest Tad ment was relatively small, and the company has made surf 248,263 196,619 Cost of goods sold boards only for its own store, the investors haven't required 42,865 28,372 Cash detailed financial statements from Tad. But thanks to word 62,738 55,506 Depreciation of mouth among professional surfers, sales have picked up 13,831 Interest expense 12,067 recently, an Tad is considering a major expansion. His Selling and administrative 38,668 50,469 plans include opening another surfboard store in Hawaii Accounts payable 20,143 34,091 as well as supplying his "sticks" (surfer lingo for boards) 244,881 Net fixed assets 298,350 to other sellers. 385,724 470,172 Sales Tad's require a significant investment Accounts receivable 20,104 26,078 which he plans to finance with a combination of Notes payable 22,855 24,955 rom outsiders plus some money borrowed from banks Long-term debt 123,607 140,000 Naturally, the new investors and creditors require more orga 38,706 52,057 Inventory than Tad has previ nized and detailed financial statements ously prepared. At the urging of his investors. Tad has hired New equity 15,000