[SOLVED] Corporate Finance

I’m stuck on a Business question and need an explanation.

Struggling to find relevant content or pressed for time? – Don’t worry, we have a team of professionals to help you on
[SOLVED] Corporate Finance
Get a 15% Discount on this Paper
Order Now

Assignment 2

Cash Flows and Financial Statements at SeaHornet Boards, Inc.

SeaHornet 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 SeaHornet 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 a financial analyst to evaluate the performance of the company over the past year.

After rooting through old bank statements, sales receipts, tax returns, and other records, the financial analyst has assembled the following information:

SeaHornet Boards currently pays out 50 percent of net income as dividends to Tad and the other original investors, and it has a 20 percent tax rate.

REQUIREMENTS:

As the financial analyst for SeaHornet Boards, your job is to prepare the six financial statements listed below. Then, based on the statements you prepared, answer the two questions listed below.

Financial Statements

1. Income statement for 2010 and 2011 (10 points).

2. Balance sheet for 2010 and 2011 (10 points).

3. Operating cash flow for 2010 and 2011 (10 points).

4. Cash flow from assets for 2011 (10 points).

5. Cash flow to creditors for 2011 (10 points).

6. Cash flow to stockholders for 2011 (10 points).

Questions

Q1. How would you describe SeaHornet Boards’ cash flows for 2011? Write a brief discussion (20 points).

Q2. In light of your discussion in the previous question, what do you think about Tad’s expansion plans (20 points)?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Upload assignment instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with MyCoursebay
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Social Work and Human Services
Great Work!
Customer 452587, October 13th, 2021
Nursing
Thank you to the writer and also thank you to the support team I got an A for the paper
Customer 452635, June 17th, 2022
Other
Great Work!
Customer 452587, March 10th, 2022
Other
AWESOME
Customer 452813, June 25th, 2022
Social Work and Human Services
The paper is impressive. Very professional and per the instructions
Customer 452533, May 24th, 2021
Philosophy
i got the paper a bit late but it is good quality will for sure come back and use this website.
Customer 452611, September 9th, 2021
IT, Web
Excellent job on the paper!
Customer 452885, December 28th, 2022
Other
GREAT JOB THANK YOU.
Customer 452813, July 18th, 2022
Social Work and Human Services
Awesome, Work! Didn't have to add much to it. Thank You!
Customer 452587, September 7th, 2021
Nursing
Great work! Thank you so much.
Customer 452707, July 15th, 2022
Eng 099
I recveived a B on this paper but I'm not sure why.
Customer 452775, June 18th, 2022
Finance
Thank You
Customer 452643, October 24th, 2021
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Get top-notch homework help now. 20% off first 10 orders!

NEW

Thank you for choosing MyCoursebay. Your presence is a motivation to us. All papers are written from scratch. Plagiarism is not tolerated. Order now for a 15% discount

Order Now