SOLUTION 1:
The cash flow 2009 of the company provides overview of operating cash flow, cash flow to creditors, and cash flow to stockholders.

Operating Cash Flow :The Operating cash flows shows the cash generated from the business from its day to day operations. It also reflects that the cash inflows are enough for doing the day to day operation of the business.

Both year of company had the positive cash flows. This will help them to cover all business related activity.

cash flow to creditors, and cash flow to stockholders:The cash flow from the assets represents the total cash flow from the shareholders and creditors. This is the cash which business is generated from their assets, it also consist the operating cash flow and change in net working capital. The cash flow from the assets in year 2009 was $5,632 . Net capital spending is considered as the money spends on the fixed assets less the money received from the selling of various fixed assets. Company cash flow from the assets also positive which shows that assets are par from the debt and dividend to stockholders.

(for learning purpose i give you explanation below the solution 2)

SOLUTION2:

According to analysis, I can say that the financial position of the Sunset Boards is good and they are able to expand their business. The cash flow from the operation shows that they have enough cash for paying the amount for daily activity. But the cash flow from the creditors is negative because they are invested in fixed assets which reflect growth part of the company. If we see the cash flow to stockholders then you can see company have enough amounts to pay their stockholders. So, According to analysis we can say that the company has enough cash flow potential to pay the creditors and their investors

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EXPLANATION :

I do analysis of the company financial information. This information help the company for securing there finance need from investor also creditors for funding of Tad expansion plans. This memo focuses on financial statement and analysis of cash flow for 2009.

SUNSET BOARD
INCOME STATEMENTS
AS DECEMBER 31,2008 & 2009
	2008	2009
NET SALES	247,259	301,392
Less: COGS	126,038	159,143
Gross Profit	121,221	142,249
Less : Selling Expenses	24,787	32,352
Less: Depriciation	35,581	40,217
Earning Before interest and Tax	60853	69,680
Less: interest expenses	7735	88,66
Earning Before Tax	53118	60814
income tax@ 20%	10624	12162
Earning After Tax(Net Income)	42494	48652
Less : Dividend@50 %	21247	24326
Retained Earning	21247	24326

SUNSET BOARD
BALANCE SHEET
AS DECEMBER 31,2008 & 2009
	2008	2009
ASSETS
CURRENT ASSETS
CASH	18,187	27,478
Account Receivable	12,887	16,717
Inventory	27,119	37,216
Total CURRENT ASSETS	58,193	81,411
Fixed Assest(Net)	156,975	191,250
TOTAL ASSEST	215168	272,661
LIABILITIES
CURRENT LIABILITIES
accounts Payable	32,143	36,404
Notes payable	14,651	15,997
TOTAL CURRENT LIABILITIES	46794	52,401
LONG TERM DEBT	79,235	91,195
TOTAL LIABILITIES	126029	143596
EQUITY
OWNER EQUITY	67,892	67,892
Contributed Capital	0	15,600
Retained Earnings	21,247	45573
TOTAL EQUITY	89,139	129,065
TOTAL EQUITY & LIABILITIES	215168	272,661

Cash Flows
The cash flow 2009 of the company provides overview of operating cash flow, cash flow to creditors, and cash flow to stockholders.

Operating Cash Flow

The Operating cash flows shows the cash generated from the business from its day to day operations. It also reflects that the cash inflows are enough for doing the day to day operation of the business.

Operating Cash Flow for 2008 and 2009
	2008	2009
Earnings before Interest and Taxes	60853	69,680
Add: Depreciation	35,581	40,217
Less: Income Tax	10624	12162
Net Cash Flow from Operating Activities	85,810	97,735

According to above analysis we can say that the both year of company had the positive cash flows. This will help them to cover all business related activity.
The cash flow from the assets represents the total cash flow from the shareholders and creditors. This is the cash which business is generated from their assets, it also consist the operating cash flow and change in net working capital.

Capital Spending = Ending Net Fixed Assets - Beginning Fixed Assets + Depreciation
Capital Spending = 191,250-156,975+40,217
Capital Spending = $74,492

Addition to Working Capital = Ending working capital - Beginning working capital
Addition to Working Capital = ($81,411-$52,401)-($58,193-$46,794)
Addition to Working Capital = $17,611
Cash Flow from Assets = Operating Cash flow - Capital Spending - Addition to Net Working Capital

Cash Flow from Assets=97,735 -$74,492-$17,611

Cash Flow from Assets = $5,632

The cash flow from the assets in year 2009 was $5,632 . Net capital spending is considered as the money spends on the fixed assets less the money received from the selling of various fixed assets. Company cash flow from the assets also positive which shows that assets are par from the debt and dividend to stockholders.  

Cash Flow to Creditors
The net cash paid to the creditors show by the Cash flow to creditors. This will be calculated by the subtracting New Long-term Debt from interest paid.
Cash Flow to Creditors = Interest paid - New Long-term Debt
Cash Flow to Creditors = $88,66-($91,195-$79,235)
Cash Flow to Creditors = ($3,094)

Cash Flow to Stockholders
The cash flow from the stockholders shows the net cash that is paid to stockholders. This will be calculated by the subtracting Ending Equity from Beginning Equity from Addition to Retained Earnings.
New Equity = Ending Equity - Beginning Equity - Addition to Retained Earnings
New Equity = $129,065-$89,139-($45573-$21,247)
New Equity = $15,600
Cash Flow to Stockholder's = Dividend Paid - Net New Equity

=$24326-$15,600

=$8726