4 Assignments Attached. All Answers Are Available Online. Need Original And As Per Instructions Answers.
1. Case I ===>>> need half page write-up and answers to all problems asked in word document.
2. Case II ===>>> need half page write-up and answers to all problems asked in word document.
3. Week 5 Problems ===>>> need all questions answered in excel sheet.
4. Week 6 Homework ===>>> need all questions answered in excel sheet.
P.S. All answers are available online. You are to give me correct answers and as per the above instructions. All the work needs to be original.
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.
One page write up
CHAPTER CASE
CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDS, INC.
Sunset Boards is a small company that manufactures and sells surfboards in Malibu. Tad Marks, the founder of the company, is in charge of the design and sale of the surfboards, but his background is in surfing, not business. As a result, the company’s financial records are not well maintained.
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 surfboards only for its own store, the investors haven’t required detailed financial statements from Tad. But thanks to word of mouth among professional surfers, sales have picked up recently, and Tad is considering a major expansion. His plans include opening another surfboard store in Hawaii, as well as supplying his “sticks” (surfer lingo for boards) to other sellers.
Tad’s expansion plans require a significant investment, which he plans to finance with a combination of additional funds from outsiders plus some money borrowed from banks. Naturally, the new 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 rooting through old bank statements, sales receipts, tax returns, and other records, Paula has assembled the following information:
2013
2014
Cost of goods sold
$169,969
214,607
Cash
24,524
26,056
Depreciation
47,980
54,230
Interest expense
10,442
11,954
Selling & administrative expenses
33,425
43,626
Accounts payable
43,344
48,090
Net fixed assets
211,680
264,021
Sales
333,426
406,427
Accounts receivable
17,378
22,542
Notes payable
19,757
21,571
Long-term debt
106,848
119,976
Inventory
36,570
50,185
New equity
0
20,160
Sunset Boards currently pays out 50 percent of net income as dividends to Tad and the other original investors, and has a 20 percent tax rate. You are Paula’s assistant, and she has asked you to prepare the following:
1. An income statement for 2013 and 2014.
2. A balance sheet for 2013 and 2014.
3. Operating cash flow for each year.
4. Cash flow from assets for 2014.
5. Cash flow to creditors for 2014.
6. Cash flow to stockholders for 2014.
QUESTIONS
1.How would you describe Sunset Boards’ cash flows for 2014? Write a brief discussion.
2.In light of your discussion in the previous question, what do you think about Tad’s expansion plans?
(Ross 51)
Ross, Stephen, Randolph Westerfield, Bradford Jordan. Essentials of Corporate Finance, 8th Edition. McGraw-Hill Learning Solutions, 01/2013. VitalBook file.
The citation provided is a guideline. Please check each citation for accuracy before use.