Intermediate Accounting

Question 3

Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. $15,500 9,960 5,540 (2,216) $ 3,324 Dec. 31, 2020 TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue Operating expenses: Cost of goods sold $ 5,100 Depreciation expense 410 Insurance expense 950 General and administrative expense 3,500 Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands) Dec. 31,2021 Assets: Cash $ 640 Accounts receivable 835 Inventory 825 Prepaid insurance 140 Equipment 3,300 Less: Accumulated depreciation (1,180) Total assets $ 4,560 Liabilities and Shareholders' Equity: Accounts payable $ 385 Accrued liabilities (for general & administrative expense) 385 Income taxes payable 365 otes payable (due 12/31/2022) 1,100 Common stock 1, 120 Retained earnings 1,205 Total liabilities and shareholders' equity $ 4,560 $ 370 1,000 770 40 2,650 (770) $ 4,060 $ 530 570 320 800 970 870 $ 4,060 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.) 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: Net cash flows from financing activities 0 Net increase in cash 0 Cash, January 1 Cash, December 31 $ 0