Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December
2.
Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES | |||||||||||
Income Statement | |||||||||||
For the Year Ended December 31, 2021 | |||||||||||
($ in thousands) | |||||||||||
Sales revenue | $ | 7,960 | |||||||||
Operating expenses: | |||||||||||
Cost of goods sold | $ | 3,520 | |||||||||
Depreciation expense | 400 | ||||||||||
Insurance expense | 260 | ||||||||||
General and administrative expense | 1,960 | ||||||||||
Total operating expenses | 6,140 | ||||||||||
Income before income taxes | 1,820 | ||||||||||
Income tax expense | (760 | ) | |||||||||
Net income | $ | 1,060 | |||||||||
Balance Sheet Information ($ in thousands) | Dec. 31,2021 | Dec. 31, 2020 | |||||||||
Assets: | |||||||||||
Cash | $ | 460 | $ | 360 | |||||||
Accounts receivable | 910 | 990 | |||||||||
Inventory | 800 | 760 | |||||||||
Prepaid insurance | 130 | 100 | |||||||||
Equipment | 2,900 | 2,600 | |||||||||
Less: Accumulated depreciation | (1,160 | ) | (760 | ) | |||||||
Total assets | $ | 4,040 | $ | 4,050 | |||||||
Liabilities and Shareholders' Equity: | |||||||||||
Accounts payable | $ | 460 | $ | 520 | |||||||
Accrued liabilities (for general & administrative expense) | 460 | 560 | |||||||||
Income taxes payable | 360 | 310 | |||||||||
Notes payable (due 12/31/2022) | 960 | 760 | |||||||||
Common stock | 1,060 | 960 | |||||||||
Retained earnings | 740 | 940 | |||||||||
Total liabilities and shareholders' equity | $ | 4,040 | $ | 4,050 | |||||||
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. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started