Question
Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31,
Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES | |||||||||||
Income Statement | |||||||||||
For the Year Ended December 31, 2018 | |||||||||||
($ in thousands) | |||||||||||
Sales revenue | $ | 7,360 | |||||||||
Operating expenses: | |||||||||||
Cost of goods sold | $ | 3,420 | |||||||||
Depreciation | 300 | ||||||||||
Insurance | 160 | ||||||||||
Administrative and other | 1,860 | ||||||||||
Total operating expenses | 5,740 | ||||||||||
Income before income taxes | 1,620 | ||||||||||
Income tax expense | 660 | ||||||||||
Net income | $ | 960 | |||||||||
Balance Sheet Information ($ in thousands) | Dec. 31,2018 | Dec. 31, 2017 | |||||||||
Assets: | |||||||||||
Cash | $ | 360 | $ | 260 | |||||||
Accounts receivable | 810 | 890 | |||||||||
Inventory | 700 | 660 | |||||||||
Prepaid insurance | 80 | 50 | |||||||||
Plant and equipment | 2,400 | 2,100 | |||||||||
Less: Accumulated depreciation | (960 | ) | (660 | ) | |||||||
Total assets | $ | 3,390 | $ | 3,300 | |||||||
Liabilities and Shareholders' Equity: | |||||||||||
Accounts payable | $ | 360 | $ | 420 | |||||||
Payables for administrative and other expenses | 360 | 460 | |||||||||
Income taxes payable | 260 | 210 | |||||||||
Note payable (due 12/31/2019) | 860 | 660 | |||||||||
Common stock | 960 | 860 | |||||||||
Retained earnings | 590 | 690 | |||||||||
Total liabilities and shareholders' equity | $ | 3,390 | $ | 3,300 | |||||||
Required: Prepare the cash flows from operating activities section of Tiger's 2018 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Hint: Use T-accounts for the pertinent items to isolate the information needed for the statement.) (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
*********Please help me because my answers were wrong***********
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