Using the figure above, answer the following questions:

Sunset boards currently pays out 40% of net income as dividends to Tad & the other original investors, & it has a 21% tax rate. As Christina's assistant, you are asked to prepare the following

1) Income statement for 2017 & 2018

2) A balance sheet for 2017 & 2018

3) Operating cash flow for each year

4) cash flow from assets for 2018

5) cash flow to creditors for 2018

6) cash flow to stockholders for 2018

How would you describe sunsets CF for 2018? Write a brief discussion ? What do you think about Tads expansion plans?

Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company. tax returns, and other records, Christina has assembled is in charge of the design and sale of the surfboards, but his following information: background is in surfing, not business. As a result, the compa- ny's financial records are not well maintained After rooting through old bank statements, sales receip 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 surfboardsCost of goods sold only for its own store, the investors haven't required detailedCash financial statements from Tad. But thanks to word of mouthDepreciation among professional surfers, sales have picked up recently, and Interest expense Tad is considering a major expansion. His plans include open-Selling and administrative 2017 2018 $322,742 55.725 81,559 17,980 65,610 44,318 387,855 611,224 33,901 32,441 175,340 67,674 19,500 $255,605 36,884 72,158 15,687 ing another surfboard store in Hawai, as well as supplying his "sticks" (surfer lingo for boards) to other sellers. Accounts payable Tad's expansion plans require a significant investment, Net fixed assets which he plans to finance with a combination of additional Sales unds from outsiders plus some money borrowed from banks. Accounts re 26,186 318,345 501,441 26,136 29,712 160,689 50,318 aturally, the new investors and creditors require more orga- nized and detailed financial statements than Tad has previously prepared. At the urging of his investors, Tad has hired finan cial analyst Christina Wolfe to evaluate the performance of the company over the past year Notes payable Long-term debt Inventory New equity