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 $ 7,840 Operating expenses: Cost of goods sold $ 3,500 Depreciation expense 380 Insurance expense 240 General and administrative expense 1,940 Total operating expenses 6,060 Income before income taxes 1,780 Income tax expense (740 ) Net income $ 1,040 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash $ 440 $ 340 Accounts receivable 890 970 Inventory 780 740 Prepaid insurance 120 90 Equipment 2,800 2,500 Less: Accumulated depreciation (1,120 ) (740 ) Total assets $ 3,910 $ 3,900 Liabilities and Shareholders' Equity: Accounts payable $ 440 $ 500 Accrued liabilities (for general & administrative expense) 440 540 Income taxes payable 340 290 Notes payable (due 12/31/2022) 940 740 Common stock 1,040 940 Retained earnings 710 890 Total liabilities and shareholders' equity $ 3,910 $ 3,900 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.)

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 $ 7,840 Operating expenses: Cost of goods sold $ 3,500 Depreciation expense 380 Insurance expense 240 General and administrative expense 1,940 Total operating expenses 6,060 Income before income taxes 1,780 Income tax expense (740 ) Net income $ 1,040 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash $ 440 $ 340 Accounts receivable 890 970 Inventory 780 740 Prepaid insurance 120 90 Equipment 2,800 2,500 Less: Accumulated depreciation (1,120 ) (740 ) Total assets $ 3,910 $ 3,900 Liabilities and Shareholders' Equity: Accounts payable $ 440 $ 500 Accrued liabilities (for general & administrative expense) 440 540 Income taxes payable 340 290 Notes payable (due 12/31/2022) 940 740 Common stock 1,040 940 Retained earnings 710 890 Total liabilities and shareholders' equity $ 3,910 $ 3,900 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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					$	7,840
Operating expenses:
Cost of goods sold		$	3,500
Depreciation expense			380
Insurance expense			240
General and administrative expense			1,940
Total operating expenses						6,060
Income before income taxes						1,780
Income tax expense						(740	)
Net income					$	1,040
Balance Sheet Information ($ in thousands)	Dec. 31,2021		Dec. 31, 2020
Assets:
Cash		$	440		$	340
Accounts receivable			890			970
Inventory			780			740
Prepaid insurance			120			90
Equipment			2,800			2,500
Less: Accumulated depreciation			(1,120	)		(740	)
Total assets		$	3,910		$	3,900
Liabilities and Shareholders' Equity:
Accounts payable		$	440		$	500
Accrued liabilities (for general & administrative expense)			440			540
Income taxes payable			340			290
Notes payable (due 12/31/2022)			940			740
Common stock			1,040			940
Retained earnings			710			890
Total liabilities and shareholders' equity		$	3,910		$	3,900

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.)

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