Refer to the situation described in E 4–20.

Required:
Prepare the cash flows from operating activities section of Tiger’s 2021 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable.

E 4–20

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TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 (S in thousands) Sales revenue $7,000 Operating expenses: Cost of goods sold Depreciation expense Insurance expense $3,360 240 100 General and administrative expense Total operating expenses 1,800 5,500 Income before income taxes 1,500 Income tax expense (600) Net income $ 900 Balance Sheet Information ($ in thousands) Dec. 31, 2021 Dec. 31, 2020 Assets: $ 300 $ 200 Cash Accounts receivable 750 830 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 640 600 50 20 2,100 (840) 1,800 (600) Total assets $3,000 $2,850 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & admin. expense) Income taxes payable Notes payable (due 12/31/2022) Common stock $ 300 300 $ 360 400 200 150 800 600 008 540 900 Retained earnings 500 Total liabilities and shareholders' equity $3,000 $2,850