Question

Exercise 4-20 (Algo) Statement of cash flows; indirect method [LO4-8]

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								$	10,500
Operating expenses:
Cost of goods sold		$	4,100
Depreciation expense			310
Insurance expense			450
General and administrative expense			2,500
Total operating expenses									7,360
Income before income taxes									3,140
Income tax expense									(1,256	)
Net income								$	1,884
Balance Sheet Information ($ in thousands)	Dec. 31,2021						Dec. 31, 2020
Assets:
Cash		$	440					$	270
Accounts receivable			785						900
Inventory			745						670
Prepaid insurance			120						55
Equipment			2,800						2,150
Less: Accumulated depreciation			(980	)					(670	)
Total assets		$	3,910					$	3,375
Liabilities and Shareholders' Equity:
Accounts payable		$	335					$	430
Accrued liabilities (for general & administrative expense)			335						470
Income taxes payable			235						220
Notes payable (due 12/31/2022)			1,000						700
Common stock			1,040						870
Retained earnings			965						685
Total liabilities and shareholders' equity		$	3,910					$	3,375

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.)

Answer 1