Please do the 2 questions with the Y beside them

Cash Flows and Financial Statements at Sunset Boards, Inc. Sunset Boards is a small company that manufactures and sells financial analyst Christina Wolfe to evaluate the performance surfboards in Malibu. Tad Marks, the founder of the company, of the company over the past year. is in charge of the design and sale of the surfboards, but his After rooting through old bank statements, sales receipts, background is in surfing, not business. As a result, the compa- tax returns, and other records, Christina has assembled the fol- ny's financial records are not well maintained. lowing information: The initial investment in Sunset Boards was provided by Tad and his friends and family. Because the initial invest- 2014 2015 ment was relatively small, and the company has made surf- Cost of goods sold $ 196,619 $ 248,263 boards only for its own store, the investors haven't required Cash 28,372 42,865 detailed financial statements from Tad. But thanks to word Depreciation 55,506 62,738 of mouth among professional surfers, sales have picked up Interest expense 12,067 13,831 recently, and Tad is considering a major expansion. His Selling and administrative 38,668 50,469 plans include opening another surfboard store in Hawaii, Accounts payable 20,143 as well as supplying his "sticks (surfer lingo for boards) 34,091 to other sellers. Net fixed assets 244,881 298,350 Tad's expansion plans require a significant investment, Sales 385,724 470,172 which he plans to finance with a combination of additional Accounts receivable 20,104 26,078 funds from outsiders plus some money borrowed from banks. Notes payable 22,855 24,955 Naturally, the new investors and creditors require more orga- Long-term debt 123,607 140,000 nized and detailed financial statements than Tad has previ. Inventory 38,706 52,057 ously prepared. At the urging of his investors, Tad has hired New equity 0 15,000 5. Cash flow to creditors for 2015. 6. Cash flow to stockholders for 2015. Sunset Boards currently pays out 40 percent of net income as dividends to Tad and the other original investors, and it has a 30 percent tax rate. You are Christina's assistant, and she has asked you to prepare the following: Y1. An income statement for 2014 and 2015. Y. A balance sheet for 2014 and 2015. 3. Operating cash flow for each year. 4. Cash flow from assets for 2015. QUESTIONS 1. How would you describe Sunset Boards' cash flows fo 2015? Write a brief discussion. 2. In light of your discussion in the previous question, wt do you think about Tad's expansion plans