Question

Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. $ 7,180 $ 3,390 270 130 1,830 5,620 1,560 (630) $ 930 TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid insurance Equipment Less Accumulated depreciation Total assets 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 Total liabilities and shareholders' equity Dec. 31, 2021 Dec. 31, 2020 $ 230 860 630 $ 330 780 670 65 2,250 (900) $ 3,195 35 1,950 (630) $ 3,075 $ 330 330 230 830 930 545 $3,195 $ 390 430 180 630 830 615 $ 3,075

Answer 1

$ $ 860 7,180 -780 7,260 $ $ $ 35 130 $ $ -65 100 $ $ $ Workings: a. Cash received from customer's Beginning balance of accounts receivables Add:Sales Less:Ending balance of accounts receivables Cash received from customers b. Cash paid for Insurance Beginning balance of prepaid insurance Add:Insurance expenses Less:Ending balance of prepaid insurance Cash paid for Insurance c. Cash paid for Merchandise Beginning balance of accounts payable Add:cost of good sold Less:Ending balance of accounts payable Add:Beginning balance of Inventory Less:Ending balance of Inventory Cash paid for Merchandise d. Cash paid for general and administrative expenses Beginning balance of accured liabilities Add: general and admin expenses Less:Ending balance of accured liabilities Cash paid for general and administrative expenses e. Cash paid for Income taxes Beginning balance of Income tax payable Add: Income taxes expenses Less:Ending balance of Income tax payable Cash paid for Income taxes $ 390 3,390 -330 630 -670 3,410 $ $ $ $ $ 430 1.830 -330 $ $ 1,930 $ 180 $ $ 630 -230 580 $ $ Statement of Cash flows For the year ended December 31, 2021 Cash flows from operating activities: Cash received from customers Cash paid for Insurance Cash paid for Merchandise Cash paid for general and administrative expenses Cash paid for Income taxes Net cash flow from operating activities $ $ $ 7,260 -100 -3,410 -1,930 -580 1,240 $ $