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. $13,000 8,660 4,340 (1,736) $ 2,604 Dec. 31, 2020 TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 (s in thousands) Sales revenue Operating expenses : Cost of goods sold $ 4,600 Depreciation expense 360 Insurance expense 700 General and administrative expense 3,000 Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands ) Dec. 31, 2021 Assets: Cash $ 540 Accounts receivable 810 Inventory 750 Prepaid insurance 170 Equipment 3,300 Less: Accumulated depreciation (1,080) Total assets $ 4,490 Liabilities and Shareholders' Equity: Accounts payable $ Accrued liabilities (for general & administrative expense) 360 Income taxes payable 290 Notes payable (due 12/31/2022) 1,300 Common stock 1,020 Retained earnings 1,160 Total liabilities and shareholders' equity $ 4,490 $ 320 950 720 80 2,400 (720) $ 3,750 360 $ 480 520 270 950 920 610 $ 3,750 gels Sldte 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: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 $ Problem 4-5 (Algo) Income statement presentation; Restructuring costs; Discontinued operations; Accounting error (LO4-1, 4-3, 4-4,4-5) The preliminary 2021 income statement of Alexian Systems, Inc., is presented below: ALEXIAN SYSTEMS, INC. Income Statement For the Year Ended December 31, 2021 ($ in millions, except earnings per share) Revenues and gainst Sales revenue $ 578 Interest revenue 21 Other Income 119 Total revenues and gains 718 Expenses Cout of goods sold 288 Selling and administrative expense 202 Income tax expense 52 Total expenses 542 Net Income S 171 Earnings per share $17.10 Additional information: 1. Selling and administrative expense includes $44 million in restructuring costs. 2. Included in other income is $110 million in income from a discontinued operation. This consists of $90 million in operating income and a $20 million gain on disposal. The remaining $9 million is from the gain on sale of investments 3. Cost of Goods Sold in 2021 was increased by $10 million to correct an error in the calculation of 2020's ending inventory, The amount is material Required: Prepare a revised income statement for 2021 reflecting the additional facts. Use a multiple-step format. Assume that an income tax rate of 25% applies to all income statement items, and that 10 million shares of common stock were outstanding throughout the year (Enter your answers in millions rounded to 2 decimal places. Round EPS answers to 2 decimal places.) ALEXIAN SYSTEMS, INC Income Statement For the Year Ended December 31, 2021 ($ in millions except per share date) Gross profit Operating expenses Total operating expenses Operating income Other income: 0.00 0.00 Total other income Income from continuing operations before income taxes 0.00 0.00 0.00 Income from continuing operations Discontinued operations: 0.00 Total other income Income from continuing operations before income taxes 0.00 0.00 Income from continuing operations Discontinued operations: 0.00 Income on discontinued operations Net income Earnings per share: + + Net income