WARF COMPUTERS Balance Sheets (sin thousands) Equity 2019 Ratio $ 542 859 769 110 $2280 Other 2018 Current assets Cash and equivalents $469 Accounts receivable BO2 Inventories 795 94 Total current assets $2,160 Fixed assets Property, plant, and equipment $ 3,815 Less accumulated depreciation 1,310 Net property, plant and equipment $2,505 Intangible assets and others 851 Total feed assets $3.356 $4,978 2011 2019 Current liabilities Accounts payable $ 582 $ 623 Accrued expenses 481 296 Total current llabilities $ 1,063 $ 929 Long-term Babies Deferred taxes $ 191 $ 257 Long-term debt 1379 1.415 Total long-term liabilities $ 1,570 $ 1672 Stockholders' equity Preferred stock $ 25 $ 25 Common stock 151 155 Capital surplus 934 949 Accumulated retained 1,924 3.112 earnings Less treasury stock 151 230 Total equity $2 883 $4.011 1.608 $3,370 18 953 $4.322 Total Salibes and shareholders' equity $ 5,516 $6,602 $5.516 $6,602 Total assets WARF COMPORE Income Statement is in $9.068 5.347 848 298 Sales Cost of goods sold Selling, general, and administrative expense Depreciation Operating income Other Income 1953 IsofEs Interest expense Pretax income Taxes Current: $559 Deferred$66 Net income Dividends Retained earnings $2,575 $2,665 $2,501 625 $ 1,876 $ 688 $ 1,188 NK also has provided the following information: During the year the company raised $274,000 in new long-term debt and retired $238,000 in long-term debt. The company also sold $19.000 in new stock and repurchased $79,000 in stock. The company purchased $1,778,000 in fixed assets and sold $514,000 in fixed assets. Angus has asked you to prepare the financial statement of cash flows and the accounting statement of cash flows. He also has asked you to answer the following questions: 1. How would you describe Warf Computers's cash flows? 2. Which Which cash flow statement more accurately describes the cash flow at the company? 3. In light In light of your previous answers, comment on Nick's expansion plans. the average 400,000 600.000 C e tax table in Excel for a married couple similar to the individual taxta shown above. Your spreadsheet should then calculate the marginal tax rate, the av fax rate, and the tax bill for any level of taxable income input by a user. For a taxable income of $265.000, what is the marginal tax rate? For a taxable income or $265.000, what is the total tax bill? d. For a taxable income of $265.000. what is the average tax rate! f o Case CASH FLOWS AT WARF COMPUTERS, INC. Warf Computers In art Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group has supplied the limited additional investment needed by the company in the form of both equity and short and long-term debt. Recently the company has developed a virtual keyboard (VK The VK uses sophisticated artificial intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling and grammatical errors, and format the document according to preset user guidelines. The VK even suggests alternative phrasing and sentence structure, and it provides detailed stylistic diagnostics. Based on a proprietary, very advanced software/hardware hybrid technology, the system is a full generation beyond what is CUT- rently on the market. To introduce the VK, the company will require significant outside investment Nick has made the decision to seek this outside financing in the form of new equity investments and bank loans. Naturally, new investors and the banks will require a detailed financial analysis. Your employer, Angus Jones & Partners, LLC, has asked you to examine the financial statements provided by Nick. Here are the balance sheets for the two most recent years and the most recent income statement