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Busn- 79 Finance

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Submitted By vancampos
Words 613
Pages 3
Case Study
Vanessa Benicio
Devry University
July 19, 2015

This paper covers Sunset Boards which is a small company that deals in manufacturing and sell of surfboards in Malibu. The company designs and sales it own surfboards without outsourcing for help and this is done by the founder of the company, Tad Marks. However, given that the Tad Marks has no business background, there has been poor maintenance of the financial records. The initial investment of the company comes up as a result of provision by Tad and his friends as well as family. Given that the initial investment of the company was somehow small, the company made a few surfboards just for its stores.
Cash flow statements normally are known to show the amount of cash that comes into a company and the amount that goes out. Usually, this amount is determined over a given period of time say quarterly or annually. In most cases, the cash flow can be confused with the income statements yet there is a big difference. This section analyzes the cash flow of Sunset Board in 2014.
Sunset Board’s Cash flow for 2014
Usually, the cash flow from operating activities shows the much money that is got from the sale of the goods and services of a company. This amount is usually less the amount of cash that is required to make and at the same time sell the goods and Services at Sunset Board. There is a positive net cash flow from operating activities showing that the company is managing its operations well and has a healthy cash flow from operations to meet their daily operational needs. This kind of flow is luring to the investors and any potential investor would put their amount in this company. The use of cash flow from operating activities is preferred for Sunset Boards rather than using the earnings this is because the non-cash earnings that are got cannot always be used to settle bills.
On the other hand

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