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Question: in a 23 page analysis answer the following questions warf...

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In a 2-3 page analysis, answer the following questions Warf Computers, Inc., was founded 15 years ago by Nick Warf, a computer programmer. The small initial investment to start the company was made by Nick and his friends. Over the years, this same group has supplied the limited additional investment needed by the company in the form of both equity and short- and long-term debt. Recently the company has developed a virtual keyboard (VK). The VK uses sophisticated artificial intelligence algorithms that allow the user to speak naturally and have the computer input the text, correct spelling and grammatical errors, and format the document according to preset user guidelines. The VK even suggests alternative phrasing and sentence structure, and it provides detailed stylistic diagnostics. Based on a proprietary, very advanced software/hardware hybrid technology, the system is a full generation beyond what is currently on the market. To introduce the VK, the company will require significant outside investment. Nick has made the decision to seek this outside financing in the form of new equity investments and bank loans. Naturally, new investors and the banks will require a detailed financial analysis. Your employer, Angus Jones & Partners, LLC, has asked you to examine the financial statements provided by Nick. Here are the balance sheets for the two most recent years and the most recent income statement: WARF COMPUTERS Balance Sheet ($ in thousands) 2015 2014 2015 2014 Current assets Current liabilities Cash and equivalents Accounts receivable Inventories Other $ 452 $ 391 668 663 78 Accounts payable $ 519 485 401 716 641 92 Accrued expenses 247 Total current liabilities $ 766 $ 886 Total current assets $1,901 1,800 Long-term liabilities Deferred taxes Long-term debt 330 159 1,148 Fixed assets 1.179 Property, plant, and $4,148 $%3,179 Total long-term liabilities equipment Less accumulated depreciation $1,509 $1,307 1.340 092 Stockholders equity Preferred stock Common stock Capital surplus Accumulated retained $ 21 21 126 779 2.478 ,603 Net property, plant, and equipment Intangible assets and others $2,808 $2,087 709 $3,60 $2,796 126 794 793 Total fixed assets earnings Less treasury stock 126 $3,227 $2,403 192 Total equity Total liabilities and shareholders equity $5,502 $4.596 Total assets $5,502 $4,596Nick has also provided the following information: During the year the company raised $228,000 in new long-term debt and retired $197,000 in long term debt. The company also sold $15,000 in new stock and repurchased $66,000 in stock. The company purchased $1,482,000 in fixed assets and sold $429,000 in fixed assets. WARF COMPUTERS Income Statement ($ in thousands) Sales Cost of goods sold Selling, general, and administrative expense Depreciation Operating income Other income EBIT Interest expense Pretax income Taxes $7,557 4,456 848 248 $2,005 75 $2,080 137 $1,943 776 Current: $605 Deferred 7 Net income Dividends Retained earnings $1,167 $292 $ 875 Angus has asked you to prepare the financial statement of cash flows and the accounting statement of cash flows. He has also asked you to answer the following questions 1. How would you describe Warf Computers cash flows?Dividends Retained earnings $ 292 $ 875 Angus has asked you to prepare the financial statement of cash flows and the accounting statement of cash flows. He has also asked you to answer the following questions 1. How would you describe Warf Computers cash flows? 2. Which cash flow statement more accurately describes the cash flows at the company? 3. In light of your previous answers, comment on Nicks expansion plans. Provide the financial statement of cash flows and the accounting statement of cash flows along with a 2-3 page analysis that thoroughly answers the questions presented with a strong supporting rationale. Your paper should be formatted in APA style with a title page. Due: Sunday by 11:59 p.m., CT Points Possible: 50

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