Question

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 $ 8,200 Operating expenses: Cost of goods sold $ 3,560 Depreciation expense 440 Insurance expense 300 General and administrative expense 2,000 Total operating expenses 6,300 Income before income taxes 1,900 Income tax expense (800 ) Net income $ 1,100 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash $ 500 $ 400 Accounts receivable 950 1,030 Inventory 840 800 Prepaid insurance 150 120 Equipment 3,100 2,800 Less: Accumulated depreciation (1,240 ) (800 ) Total assets $ 4,300 $ 4,350 Liabilities and Shareholders' Equity: Accounts payable $ 500 $ 560 Accrued liabilities (for general & administrative expense) 500 600 Income taxes payable 400 350 Notes payable (due 12/31/2022) 1,000 800 Common stock 1,100 1,000 Retained earnings 800 1,040 Total liabilities and shareholders' equity $ 4,300 $ 4,350 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.)

Answer 1