Question

Check my work 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. 1.42 points eBook $15,500 Hint Print References TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue Operating expenses: Cost of goods sold $ 5,100 Depreciation expense 410 Insurance expense 950 General and administrative expense 3,500 Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands) Dec. 31, 2021 Assets: Cash $ 640 Accounts receivable 835 Inventory 825 Prepaid insurance 140 Equipment 3,300 Less: Accumulated depreciation (1,180) Total assets $ 4,560 ....Sikilisis...and... h aldanal... Fitxt.. 9,960 5,540 (2,216) $ 3, 324 Dec. 31, 2020 $ 370 1,000 770 40 2,650 (770) $ 4,060
I need help finding the the cash balance for January 1.

Answer 1

Solution:

TIGER ENTERPRISES
Statement of Cash Flows (Indirect Method)
For the Year Ended December 31,2021
( $ in millions )
Cash flows from operating activities:
Net Income	$                     3,324
Adjustments to reconcile to operating cash flow
Depreciation expense	$                         410
Changes in operating assets and liabilities:
Increase in prepaid insurance	$                       (100)
Decrease in Account Receivables	$                         165
Increase in inventory	$                         (55)
Decrease in accounts payable	$                       (145)
Decrease in accrued liabilities	$                       (185)
Increase in income taxes payable	$                           45
Net cash flows from operating activities		$   3,459.00
Cash flow from investing activities:
Purchase of equipment	$                       (650)
Net cash flow from investing activities (B)		$           (650)
Cash flow from financing activities:
Issuance of common stock	$                         150
Issuance of notes payable	$                         300
Dividend paid to shareholders	$                   (2,989)
Net Cash flow from financing activities (C )		$       (2,539)
Net increase(decrease) in cash		$             270
Cash, January 1(Given balance of Dec. 31,2020)		$             370
Cash, December 31 (Given balance of Dec. 31,2021)		$             640

Notes:

1) January 1st balance is nothing but balance of Dec. 31,2020.

2) Calculation of Dividends

Retained Earnings
Dividends	$    2,989	Beg Balance	$                          870
		Net Income	$                      3,324
		End Balance	$                      1,205