Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $644,000. Depreciation and amortization expense of $91,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash:

Decrease in accounts receivable	$	26,000
Increase in inventory		9,600
Increase in prepaid expenses		8,900
Increase in salaries payable		10,400
Decrease in income taxes payable		15,000

Required: Prepare the operating activities section of the 2021 statement of cash flows. (Amounts to be deducted should be indicated with a minus sign.)

Cash flows from operating activities:
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities

Question 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								$	14,500
Operating expenses:
Cost of goods sold		$	4,900
Depreciation expense			390
Insurance expense			850
General and administrative expense			3,300
Total operating expenses									9,440
Income before income taxes									5,060
Income tax expense									(2,024	)
Net income								$	3,036
Balance Sheet Information ($ in thousands)	Dec. 31,2021						Dec. 31, 2020
Assets:
Cash		$	600					$	350
Accounts receivable			825						980
Inventory			795						750
Prepaid insurance			120						30
Equipment			3,100						2,550
Less: Accumulated depreciation			(1,140	)					(750	)
Total assets		$	4,300					$	3,910
Liabilities and Shareholders' Equity:
Accounts payable		$	375					$	510
Accrued liabilities (for general & administrative expense)			375						550
Income taxes payable			355						300
Notes payable (due 12/31/2022)			1,320						900
Common stock			1,080						950
Retained earnings			795						700
Total liabilities and shareholders' equity		$	4,300					$	3,910

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, 2021
($ in thousands)
Cash flows from operating activities:
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities		$0
Cash flows from investing activities:
Net cash flows from investing activities		0
Cash flows from financing activities:
Net cash flows from financing activities		0
Net increase in cash		0
Cash, January 1
Cash, December 31		$0