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Exercise 4-21 (Algo) Statement of cash flows; direct 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 $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 2$ 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 80 660 50 2,400 |(960) $3,390 2,100 (660) Total assets $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock Retained earnings 360 420 360 460 260 210 860 660 960 860 590 690 Total liabilities and shareholders' equity $3,390 $3,300

Exercise 4-21 (Algo) Statement of cash flows; direct 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 $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 2$ 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 80 660 50 2,400 |(960) $3,390 2,100 (660) Total assets $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock Retained earnings 360 420 360 460 260 210 860 660 960 860 590 690 Total liabilities and shareholders' equity $3,390 $3,300

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 4-21 (Algo) Statement of cash flows; direct 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 ed ($ in thousands) Sales revenue $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 660 80 50 2,400 (960) 2,100 (660) Total assets $3,390 $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) 360 420 360 460 260 210 860 660 Common stock 960 860 Retained earnings 590 690 Total liabilities and shareholders' equity $3,390 $3,300
Transcribed Image Text:Exercise 4-21 (Algo) Statement of cash flows; direct method [LO4-8] Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ed ($ in thousands) Sales revenue $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 660 80 50 2,400 (960) 2,100 (660) Total assets $3,390 $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) 360 420 360 460 260 210 860 660 Common stock 960 860 Retained earnings 590 690 Total liabilities and shareholders' equity $3,390 $3,300
Prepaid insurance Equipment Less: Accumulated depreciation 80 50 2,400 (960) 2,100 (660) $3,300 Total assets $3,390 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock 360 420 460 210 360 260 860 660 860 690 960 Retained earnings 590 Total liabilities and shareholders' equity $3,390 $3,300 Required: Prepare the cash flows from operating activities section of Tiger's 2021 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) TIGER ENTERPRISES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash received from customers 3.460 X Cash paid for merchandise 3,520 X Cash paid for general and administrative expense 130 X Cash paid for insurance 1,960 X Cash paid for income taxes 610 X Net cash flows from operating activities 9,680 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Transcribed Image Text:Prepaid insurance Equipment Less: Accumulated depreciation 80 50 2,400 (960) 2,100 (660) $3,300 Total assets $3,390 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock 360 420 460 210 360 260 860 660 860 690 960 Retained earnings 590 Total liabilities and shareholders' equity $3,390 $3,300 Required: Prepare the cash flows from operating activities section of Tiger's 2021 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) TIGER ENTERPRISES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash received from customers 3.460 X Cash paid for merchandise 3,520 X Cash paid for general and administrative expense 130 X Cash paid for insurance 1,960 X Cash paid for income taxes 610 X Net cash flows from operating activities 9,680 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
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