Question
Presented below is the 2016 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31,
Presented below is the 2016 income statement and comparative balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2016 ($ in thousands)
Sales revenue $7,500
Operating expenses:
Cost of goods sold$3,500
Depreciation 250
Insurance 150
Administrative and other 1,900
Total operating expenses 5,800
Income before income taxes 1,700
Income tax expense 680
Net income $1,020
Balance Sheet Information ($ in thousands)Dec. 31, 2016Dec. 31, 2015
Assets:
Cash$320 $210
Accounts receivable 755 840
Inventory 655 610
Prepaid insurance 60 25
Plant and equipment 2,200 1,850
Less: Accumulated depreciation (860) (610)
Total assets$3,130 $2,925
Liabilities and Shareholders' Equity:
Accounts payable$305 $370
Payables for administrative and other expenses 305 410
Income taxes payable 205 160
Note payable (due 12/31/2017) 860 650
Common stock 920 810
Retained earnings 535 525
Total liabilities and shareholders' equity$3,130 $2,925
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.)
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