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r Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December
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Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises.
TIGER ENTERPRISES | |||||||||||
Income Statement | |||||||||||
For the Year Ended December 31, 2021 | |||||||||||
($ in thousands) | |||||||||||
Sales revenue | $ | 7,240 | |||||||||
Operating expenses: | |||||||||||
Cost of goods sold | $ | 3,400 | |||||||||
Depreciation expense | 280 | ||||||||||
Insurance expense | 140 | ||||||||||
General and administrative expense | 1,840 | ||||||||||
Total operating expenses | 5,660 | ||||||||||
Income before income taxes | 1,580 | ||||||||||
Income tax expense | (640 | ) | |||||||||
Net income | $ | 940 | |||||||||
Balance Sheet Information ($ in thousands) | Dec. 31,2021 | Dec. 31, 2020 | |||||||||
Assets: | |||||||||||
Cash | $ | 340 | $ | 240 | |||||||
Accounts receivable | 790 | 870 | |||||||||
Inventory | 680 | 640 | |||||||||
Prepaid insurance | 70 | 40 | |||||||||
Equipment | 2,300 | 2,000 | |||||||||
Less: Accumulated depreciation | (920 | ) | (640 | ) | |||||||
Total assets | $ | 3,260 | $ | 3,150 | |||||||
Liabilities and Shareholders' Equity: | |||||||||||
Accounts payable | $ | 340 | $ | 400 | |||||||
Accrued liabilities (for general & administrative expense) | 340 | 440 | |||||||||
Income taxes payable | 240 | 190 | |||||||||
Notes payable (due 12/31/2022) | 840 | 640 | |||||||||
Common stock | 940 | 840 | |||||||||
Retained earnings | 560 | 640 | |||||||||
Total liabilities and shareholders' equity | $ | 3,260 | $ | 3,150 | |||||||
Required: Prepare the cash flows from operating activities section of Tiger's 2021 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. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
TIGER ENTERPRISES | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 2021 | ||
($ in thousands) | ||
Cash flows from operating activities: | ||
Cash received from customersselected answer correct | 7,320 | |
Cash paid for merchandiseselected answer correct | ||
Cash paid for general and administrative expenseselected answer correct | t | |
Cash paid for insuranceselected answer correct | ||
Cash paid for income taxesselected answer correct | ||
not attempted | ||
Net cash flows from operating activities |
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