2.Presented below is the 2016 income statement and comparative balance sheet information for Tiger Enterprises.

TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2016 ($ in thousands)
Sales revenue				$	9,000
Operating expenses:
Cost of goods sold	$	3,800
Depreciation		280
Insurance		300
Administrative and other		2,200
Total operating expenses					6,580
Income before income taxes					2,420
Income tax expense					968
Net income				$	1,452
Balance Sheet Information ($ in thousands)	Dec. 31, 2016			Dec. 31, 2015
Assets:
Cash	$	380		$	240
Accounts receivable		770			870
Inventory		700			640
Prepaid insurance		90			40
Plant and equipment		2,500			2,000
Less: Accumulated depreciation		(920	)		(640	)
Total assets	$	3,520		$	3,150
Liabilities and Shareholders' Equity:
Accounts payable	$	320		$	400
Payables for administrative and other expenses		320			440
Income taxes payable		220			190
Note payable (due 12/31/2017)		1,040			800
Common stock		980			840
Retained earnings		640			480
Total liabilities and shareholders' equity	$	3,520		$	3,150

Required:

Prepare Tigers statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments.) (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

TIGER ENTERPRISES
Statement of Cash Flows
For the Year Ended December 31, 2016
($ in thousands)
?
?	?
?
?	?
?
?	?
?	?
?	?
?	?
?	?
?	?
?	?
?		$0
?
?		?
?		?
?
?	?
?	?
?	?
?	?
?		0
?		0
?		?
?		$0

3.

Presented below is the 2016 income statement and comparative balance sheet information for Tiger Enterprises.

TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2016
($ in thousands)
Sales revenue				$	7,240
Operating expenses:
Cost of goods sold	$	3,400
Depreciation		280
Insurance		140
Administrative and other		1,840
Total operating expenses					5,660
Income before income taxes					1,580
Income tax expense					640
Net income				$	940
Balance Sheet Information ($ in thousands)	Dec. 31, 2016			Dec. 31, 2015
Assets:
Cash	$	340		$	240
Accounts receivable		790			870
Inventory		680			640
Prepaid insurance		70			40
Plant and equipment		2,300			2,000
Less: Accumulated depreciation		(920	)		(640	)
Total assets	$	3,260		$	3,150
Liabilities and Shareholders' Equity:
Accounts payable	$	340		$	400
Payables for administrative and other expenses		340			440
Income taxes payable		240			190
Note payable (due 12/31/2017)		840			640
Common stock		940			840
Retained earnings		560			640
Total liabilities and shareholders' equity	$	3,260		$	3,150

Required:

Prepare the cash flows from operating activities section of Tiger's 2016 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. (Hint: Use T-accounts for the pertinent items to isolate the information needed for the statement.) (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

TIGER ENTERPRISES
Statement of Cash Flows
For the Year Ended December 31, 2016
($ in thousands)
Cash flows from operating activities:
?	?
?	?
?	?
?	?
?	?
?	?
Net cash flows from operating activities		$0

8.

For the year ending December 31, 2016, Micron Corporation had income from continuing operations before taxes of $1,400,000 before considering the following transactions and events. All of the items described below are before taxes and the amounts should be considered material.

1.	In November 2016, Micron sold its Waffle House restaurant chain that qualified as a component of an entity. The company had adopted a plan to sell the chain in May 2016. The income from operations of the chain from January 1, 2016, through November was $180,000 and the loss on sale of the chains assets was $340,000.
2.	In 2016, Micron sold one of its six factories for $1,600,000. At the time of the sale, the factory had a carrying value of $1,300,000. The factory was not considered a component of the entity.
3.	In 2014, Microns accountant omitted the annual adjustment for patent amortization expense of $140,000. The error was not discovered until December 2016.

Required:

Prepare Microns income statement, beginning with income from continuing operations before taxes, for the year ended December 31, 2016. Assume an income tax rate of 30%. Ignore EPS disclosures. (Amounts to be deducted should be indicated with a minus sign.)

MICRON CORPORATION
Partial Income Statement
For the Year Ended December 31, 2016
Income from continuing operations before income taxes		?
?		?
?		?
Income from continuing operations		0
Discontinued operations income (loss):
?	?
?	?
Income (Loss) on discontinued operations		0
?		$0