Cash Flows and Financial Statements at Sunset Boards, Inc.Sunset Boards is a small company that manufactures and sellssurfboards in Malibu. Tad Marks, the founder of the company,is in charge of the design and sale of the surfboards, but hisbackground is in surfing, not business. As a result, the compa-Sunset Boards currently pays out 50 percent of neincome as dividends to Tad and the other original investorsand has a 20 percent tax rate. You are Christina's assistant, andshe has asked you to prepare the following:ny's financial records are not well maintained.1.The initial investment in Sunset Boards was provided byAn income statement for 2008 and 2009.Tad and his friends and family. Because the initial investment2.A balance sheet for 2008 and 2009.was relatively small, and the company has made surfboards3.only for its own store, the investors haven't required detailed4.financial statements from Tad. But thanks to word of mouthOperating cash flow for each year.Cash flow from assets for 2009.5. Cash flow to creditors for 2009.among professional surfers, sales have picked up recently, andTad is considering a major expansion. His plans include open-ing 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 additionalfunds from outsiders plus some money borrowed from banks.Naturally, the new investors and creditors require more orga-nized and detailed financial statements than Tad has previ-6.Cash flow to stockholders for 2009.QUESTIONSHow would you describe Sunset Boards' cash flows for2009? Write a brief discussion.1.In light of your discussion in the previous question,what do you think about Tad's expansion plans?2.ously prepared. At the urging of his investors, Tad has hiredfinancial analyst Christina Wolfe to evaluate the performanceof the company over the past year.After rooting through old bank statements, sales receipts,tax returns, and other records, Christina has assembled the fol-lowing information:20082009$126,03818,187Cost of goods sold$159,143Cash27,478Depreciation35,58140,217 nized and detailed financial statements than Tad has previ-your iscEwhat do you think abously prepared. At the urging of his investors, Tad has hiredfinancial analyst Christina Wolfe to evaluate the performanceof the company over the past year.After rooting through old bank statements, sales receipts,tax returns, and other records, Christina has assembled the fol-lowing information:20082009Cost of goods sold$126,03818,18735,5817,735$159,143Cash27,478DepreciationInterest expense40,2178,86632,35236,404191,250301,39216,71715,99791,19537,21615,600Selling and administrativeAccounts payable24,78732,143156,975247,25912,88714,65179,235Net fixed assetsSalesAccounts receivableNotes payableLong-term debtInventoryNew equity27,119

Name: Cash Flows and Financial Statements at Sunset Boards, Inc.Sunset Boar
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Cash Flows and Financial Statements at Sunset Boards, Inc.Sunset Boards is a small company that manufactures and sellssurfboards in Malibu. Tad Marks, the founder of the company,is in charge of the design and sale of the surfboards, but hisbackgroun

Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Business

Accounting

After rooting through old bank statements, sales receipts, tax returns, and other records, Christina has assembled the fol- lowing information: 2008 2009 Cost of goods sold $126,038 $159,143 Cash 18,187 27,478 Depreciation 35,581 40,217 Interest expense 7,735 8,866 Selling and administrative Accounts payable 24,787 32,352 32,143 36,404 Net fixed assets 156,975 191,250 Sales 247,259 301,392 Accounts receivable 12,887 16,717 Notes payable Long-term debt 14,651 15,997 79,235 91,195 27,119 37,216 Inventory New equity 15,600

After rooting through old bank statements, sales receipts, tax returns, and other records, Christina has assembled the fol- lowing information: 2008 2009 Cost of goods sold $126,038 $159,143 Cash 18,187 27,478 Depreciation 35,581 40,217 Interest expense 7,735 8,866 Selling and administrative Accounts payable 24,787 32,352 32,143 36,404 Net fixed assets 156,975 191,250 Sales 247,259 301,392 Accounts receivable 12,887 16,717 Notes payable Long-term debt 14,651 15,997 79,235 91,195 27,119 37,216 Inventory New equity 15,600

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

2. What is the gain on sale of machinery on December 20?
Please prepare the Income Statement and Cash Flow Statement. Thanks!
Show the computation of Cash-Flow from Assets and how this Cash-Flow is distributed to Debtholders (or Creditors) and Stockholders.
Compute for the following using the data provided below: Cash on Hand – P23,500 Cash in Bank – P226,000 Accounts Receivable – P12,500 Allowance for Bad Debts – P2,500 Merchandise Inventory, Beg – P8,200 Merchandise Inventory, End – P8,500 Prepaid Insurance Expense - P4,800 Long-term Loans Receivable - P60,400 Equipment – P45,600 Fixture and Furniture – P118,900 Acc. Depreciation – P26,800 Land – P350,000 write your answer using this format " 123,456 " Total Current Assets: Net Property, Plant and Equipment: Total Non-current Assets: Total Assets:
Golden Corporation's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. Assets Cash Accounts receivable Inventory Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Income taxes payable Total current liabilities Equity Common stock, $2 par value Paid-in capital in excess of par value, common stock. Retained earnings Total liabilities and equity Sales Cost of goods sold Gross profit GOLDEN CORPORATION Comparative Balance Sheets December 31 GOLDEN CORPORATION Income Statement For Current Year Ended December 31 Operating expenses (excluding depreciation)…
Brendon company is engaging in the buying and selling of merchandise. Based on its data the following were recovered: Cash – 50,000, Accounts Receivable – 100,000, Inventories – 70,000, Property plant and Equipment – 60,000, Accounts payable – 50,000, Note payable – 40,000, Prepaid expenses of 45,000. How much is the equity balance of the business?
You observe a company with the following items on the balance sheet (in thousands): Cash and equivalents 2018: $22 Cash and equivalents 2017: $23 Inventory 2018: $26 Inventory 2017: $21 Accounts receivable 2018: $144 Accounts receivable 2017: $129 Property, Plant, and Equipment 2018: $1,584 Property, Plant, and Equipment 2017: $1,663 Current Liabilities 2018: $247 Current Liabilities 2017: $291 Long-term debt 2018: $857 Long-term debt 2017: $1,494 What is the change in net working capital for the firm for these years. Answer in thousands (the same as how the numbers are presented).
Har
Vinubhai
Click on the icons located on the top-right corners of the data tables below to copy their contents into a spreadsheet. Income Statement Balance Sheet Sales $202,590 Assets Cash and Equivalents Accounts Receivable Costs Except Depreciation $14,950 (99,910) $102,680 EBITDA 1,980 (5,940) $96,740 4,100 $21,030 Depreciation Inventories EBIT Total Current Assets Property, Plant, and Equipment Interest Expense (net) (490) 9,990 Pre-tax Income $96,250 Total Assets $31,020 (33,688) $62,562 Income Tax Liabilities and Equity. Accounts Payable Net Income $1,550 4,080 $5,630 Debt Total Liabilities Stockholders' Equity Total Liabilities and Equity 25,390 $31,020 For the next fiscal year, you forecast net income of $49,600 and ending assets of $508,300. Your firm's payout ratio is 10.6%. Your beginning stockholders' equity is $299,900, and your beginning total liabilities are $120,400. Your non-debt liabilities such as accounts payable are forecasted to increase by $10,400. Assume your beginning…
Show new balance sheet if bank uses purchased liquidity management to offset expected drain of $12 million net deposit. Also explain effect on the size and composition of assets and liab
Please provide detailed solution..