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Sunset Boards currently pays out 40 percent of net income as dividends to Tad and the other original investors, and it has a 21

Sunset Boards currently pays out 40 percent of net income as dividends to Tad and the other original investors, and it has a

2020 2021 Cost of goods sold $306,726 $387,290 Cash 44,261 66,870 Depreciation 86,590 97,871 Interest expense 18,824 21,576 S 

  

Sunset Boards currently pays out 40 percent of net income as dividends to Tad and the other original investors, and it has a 21 percent tax rate. You are Christina's assistant, and she has asked you to prepare the following: 2020 2021 Cost of goods sold $306,726 $387,290 Cash 44,261 66,870 Depreciation 86,590 97,871 Interest expense 18,824 21,576 Selling and administrative 60,322 78,732 Accounts payable 31,423 53,181 Net fixed assets 382,014 465,426 Sales 601,729 733,469 Accounts receivable 31,363 40,681 Notes payable 35,654 38,929 Long-term debt 192,827 210,408 Inventory 60,382 81,209 New equity 23,400 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. 6. Cash flow to stockholders for 2021. QUESTIONS 1. How would you describe Sunset Boards's cash flows for 2021? Write a brief discussion. 2. In light of your discussion in the previous question, what do you think about Tad's expansion plans?

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1 SUNSET BOARD CONSOLIDATED COMPREHENSIVE STATEMENT OF INCOME FOR THE YEAR ENDED 2020 AND 2021 YEAR 2020 YEAR 2021 Income Sales 60172900 73346900 Less ... blur-text-image

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