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TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $9,000 Operating expenses: Cost of goods sold Depreciation expense $3,800 280 Insurance expense 300 2,200 General and administrative expense Total operating expenses Income before income taxes 6,580 2,420 (968) Income tax expense $1,452 Net income Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: 380 240 Cash 770 870 Accounts receivable 700 640 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 90 40 2,500 (920) 2,000 (640) $3,520 $3,150 Total assets

TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $9,000 Operating expenses: Cost of goods sold Depreciation expense $3,800 280 Insurance expense 300 2,200 General and administrative expense Total operating expenses Income before income taxes 6,580 2,420 (968) Income tax expense $1,452 Net income Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: 380 240 Cash 770 870 Accounts receivable 700 640 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 90 40 2,500 (920) 2,000 (640) $3,520 $3,150 Total assets

FINANCIAL ACCOUNTING
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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For the Year Ended December 3, 20ZT ($ in thousands) Cash flows from operating activities: Net income 24 1,452 Adjustments for noncash effects: Depreciation expense 280 Changes in operating assets and liabilities: Increase in prepaid insurance (50) Decrease in accounts receivable (80) Increase in inventory 100 Decrease in accounts payable (60) Decrease in accrued liabilities 30 Increase in income taxes payable (120) Net cash flows from operating activities 24 1,552 Cash flows from investing activities: Purchase of equipment (500) Net cash flows from investing activities (500) Cash flows from financing activities: Issuance of common stock 140 Issuance of notes payable 240 Net cash flows from financing activities 380 Net increase in cash 1,432 Cash, January 1 Cash, December 31 $4 1,432
Transcribed Image Text:For the Year Ended December 3, 20ZT ($ in thousands) Cash flows from operating activities: Net income 24 1,452 Adjustments for noncash effects: Depreciation expense 280 Changes in operating assets and liabilities: Increase in prepaid insurance (50) Decrease in accounts receivable (80) Increase in inventory 100 Decrease in accounts payable (60) Decrease in accrued liabilities 30 Increase in income taxes payable (120) Net cash flows from operating activities 24 1,552 Cash flows from investing activities: Purchase of equipment (500) Net cash flows from investing activities (500) Cash flows from financing activities: Issuance of common stock 140 Issuance of notes payable 240 Net cash flows from financing activities 380 Net increase in cash 1,432 Cash, January 1 Cash, December 31 $4 1,432
Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $9,000 Operating expenses: Cost of goods sold Depreciation expense Insurance expense $3,800 280 300 General and administrative expense 2,200 6,580 2,420 (968) Total operating expenses Income before income taxes Income tax expense $1,452 Net income Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 380 240 770 870 Accounts receivable 700 640 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 90 40 2,500 (920) 2,000 (640) $3,520 $3,150 Total assets Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & adminis Income taxes payable Notes payable (due 12/31/2022) Common stock 320 400 stralive expense) 320 440 220 190 1,040 800 980 840 640 480 Retained earnings $3,520 $3,150 Total liabilities and shareholders' equity Required: Prepare Tiger's statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You wi to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a mim
Transcribed Image Text:Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $9,000 Operating expenses: Cost of goods sold Depreciation expense Insurance expense $3,800 280 300 General and administrative expense 2,200 6,580 2,420 (968) Total operating expenses Income before income taxes Income tax expense $1,452 Net income Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 380 240 770 870 Accounts receivable 700 640 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 90 40 2,500 (920) 2,000 (640) $3,520 $3,150 Total assets Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & adminis Income taxes payable Notes payable (due 12/31/2022) Common stock 320 400 stralive expense) 320 440 220 190 1,040 800 980 840 640 480 Retained earnings $3,520 $3,150 Total liabilities and shareholders' equity Required: Prepare Tiger's statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You wi to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a mim
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A cash flow statement is a type of financial statement that summarizes the sums of cash equivalents that enter and leave a business. The cash flow statement evaluates how well a company cash flow statement, or how much cash it earns to cover its debt and operating expenses.

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