Question

please complete #4-6 cash flow statements in a table format for the above case

Cash Flows and Financial Statements at Sunset Boards, Inc. unset 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 mout 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 Jameson Reid to evaluate the performance of the company over the past year. After rooting through old bank statements, sales receipts, tax returns, and other records, Jameson has assembled the following information h among professional surfers, sales have picked up recently, and Tad is considering a major 2015 2016 $203,963 $257,528 29,429 31,267 57,576 65,076 Cost of goods sold Depreciation Interest expense Selling and administrative 12,530 14,34 40,110 52,351 expenses Accounts payable Net fixed assets Sales Accounts receivable Notes payable Long-term debt Inventory New equity 52,015 57,708 254,017 316,825 400,111 487,712 0,854 27,050 23,708 25,885 128,218 143,971 43,884 60,222 0 24,192 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 Jameson's assistant, and he has asked you to prepare the following 4. Cash flow from assets for 2016. 5. Cash flow to creditors for 2016. 6. Cash flow to stockholders for 2016.

Answer 1

4	Cash flow from assets for 2016
	Purchase of fixed assets ($381901 - $311593)	-70308
5	Cash flow to creditors for 2016
	Cash paid to creditors	-268173
6	Cash flow to stockholders for 2016
	Issuance of new equity	24192
	Payment of cash dividends	-39365
	Net cash outflow to stockholders	-15173

Note: Outflows are shown with a minus sign.

Working:

4		2015	2016
	Net fixed assets (ending)	254017	316825
	Add depreciation for the year	57576	65076
	Net fixed assets (beginning)	311593	381901
5		2016
	Cost of goods sold	257528
	Add: Increase in Inventory	16338
	Less: Increase in Accounts Payable	5693
	Cash paid to creditors	268173
6		2016
	Sales		487712
	Expenses:
	Cost of goods sold	257528
	Depreciation	65076
	Selling and administrative expenses	52351
	Interest expense	14345
	Total expenses		389300
	Income before income tax		98412
	Income tax (20% x $98412)		19682
	Net income $		78730
	Dividends paid = 50% x $78730 = $39365