Exercise 4-7 (Algo) Income statement presentation; discontinued operations; restructuring costs (L04-1, 4-3, 4-4) Esquire Comic Book Company had income before tax of $1,500,000 in 2021 before considering the following material items: 1. Esquire sold one of its operating divisions, which qualified as a separate component according to generally accepted accounting principles. The before-tax loss on disposal was $390,000. The division generated before-tax income from operations from the beginning of the year through disposal of $600,000. 2. The company incurred restructuring costs of $55,000 during the year. Required: Prepare a 2021 income statement for Esquire beginning with income from continuing operations. Assume an income tax rate of 25%. Ignore EPS disclosures (Amounts to be deducted should be indicated with a minus sign.) ESQUIRE COMIC BOOK COMPANY Partial Income Statement For the Year Ended December 31, 2021 Income from continuing operations Discontinued operations: 0 Income (loss) on discontinued operations Net income (loss) 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 7,360 3,140 (1.256) $ 1,884 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 Depreciation expense $4,100 310 Insurance expense 450 General and administrative expense 2,500 Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ 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 i administrative expense) 335 235 Income taxes payable Notes payable (due 12/31/2022) 1,000 Common stock 1,040 965 Retained earnings Total liabilities and shareholders' equity $3,910 $ 270 900 670 55 2,150 (670) $ 3,375 $ 430 470 220 700 870 685 $ 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 (5 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 Net cash flows from operating 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 $ $ GA 0