Exercise 4-20 (Algo) Statement of cash flows; indirect method [LO4-8) Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. $10,500 TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue Operating expenses: Cost of goods sold $4,100 Depreciation expense 310 Insurance expense 450 General and administrative expense 2,500 Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands) Dec. 31, 2021 Assets: Cash $ 440 Accounts receivable 785 Inventory 745 Prepaid insurance 120 Equipment 2,800 Less: Accumulated depreciation (980) Total assets $3,910 Liabilities and Shareholders' Equity: Accounts payable $ 335 Accrued liabilities (for general & administrative expense) 335 Income taxes payable 235 Notes payable (due 12/31/2022) 1,000 Common stock 1,040 Retained earnings 965 7,360 3,140 (1,256) $ 1,884 Dec. 31, 2020 $ 270 900 670 55 2,150 (670) $ 3,375 $ 430 470 220 700 870 685 Income taxes payable Notes payable (due 12/31/2022) Comunon stock Retained earnings Total liabilities and shareholders' equity 235 1,000 1,040 965 $3,910 220 700 870 685 $ 3,375 Required: Prepare Tiger's 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 (S in thousands) Cash flows from operating activities: Not income Adjustments for noncash effects Depreciation expenso Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Increase in prepaid insurance Decrease in accounts payable Decrease in accrued liabilities 115 (75) (65) (95) (135) Decrease in accounts payable Decrease in accrued liabilities (95) (135) $ (255) Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment (650) (650) Net cash flows from investing activities Cash flows from financing activities: Issuance of common stock Dividends paid to shareholders 170 (1,604) Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 (1,434) (2,339) 270 $ (2,069)