DeVry BUSN 379 Wk 2 Prepare a memo in Word, which answers the questions in the Chapter 2 Case, Cash Flows and Financial Statements at Sunset Boards, Inc., on page 51 of the textbook. Use Excel to solve any financial calculations. You will be graded on

DeVry BUSN 379 Wk 2

Prepare a memo in Word, which answers the questions in the Chapter 2 Case, Cash Flows and Financial Statements at Sunset Boards, Inc., on page 51 of the textbook. Use Excel to solve any financial calculations. You will be graded on correct financial analysis, proper use of technology, business-like presentation of technology, and business-like presentation.

CHAPTER CASE

CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDS, INC.

0 tinsel Boards is a small company that manufactures and sells surfboards in Malibu. Tad Mar., the founder of the company, is M charge of the design and sale of the surfboards, but IMs background is in surfing, not business. As a result, the company's financial records are mt well maintained.

a'Me 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 financial statements from Tad. But Menlo to word of mouth
among professional surfers, sales have picked up recently, and Tad is consideHng a major expansion, His plans include opening another surfboard store in Hawaii, as well as supplying Ms licks" (surfer lingo for boards) to other sellers,

Tad, eckpansion plans require a significam investment, which he plans to finance with a combination of additional funds from outsiders plus some rooney borrowed from banks. Naturally,. oew investors and creditors require more organized and detailed financial statements than Tad has previously prepared.At the urging of his investors, Tad has hired financial analyst Paula Wolfe to evaluate the performance of the company over the past year.

after. ooting through old hank statements, sales receipts, tax reurns, and other records, Paula has assembled the following information:

Sunset Boards currently pays oM 50 percent of oet income as dividends to Tad and the other original investors, and has a 20 percent tax rate. You are Puila's assistant, and she has asked you to prepare the following: 1., income statement for 2013 and 2014.

2.,4 balance sheet for 2013 and 2014. 3. Operating cash flow for each year. 4.Cash flow from assets for 2014. 5.Cash flow M creditors for 201, 6.Cash flow to stockholders for 2014.

How would you describe Sunset Boards' cash flows for 20147 Write a brief discussion.

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

The terms owners' equity, shareholders' equity, and 44 %242deri equity axe used interchangeably to refer to the equity in a corporation. n. tor. net 4.72 is 41x45444. 7..0.5 5.2 ....mt. uvw .