Question

Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. $17,000 TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ 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) $ 5,400 440 1,100 3,800 10,740 6,260 (2,504) $ 3,756 Dec. 31, 2020 Dec 31, 2021 Cash Accounts receivable Inventory Prepaid Insurance Equipment Less: Accumulated depreciation Total assets Llabilities 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 $ 700 850 870 170 3,600 (1,240) $ 4,950 $ 400 1,030 800 55 2,800 (800) $ 4,285 $ 400 400 380 1,280 1,180 1,310 $ 4,950 $ 560 600 350 950 1,000 825 $ 4,285

Answer 1

TIGER ENTERPRISES Statement Of Cash Flows For the year ended December 31,2021 ($ in thousands) Cash flow from operating Activities: Net income $ 3,756 Adjustments to reconcile net income to net cash provided by: Depreciation Expense 440 Decrease in Accounts Receivable (1,030-850) 180 Incitease in Inventory (870-800) -70 Increase in Prepaid Insurance (170-55) - 115 Decrease in Accounts Payable (560-400) - 160 Decrease in accured liabilities (for general & administrative) (600-400) -200 Increase in income taxes payable (380-350) 30 Net Cash Provided by Operating Activities $3,861 Cash Flow from Investing Activities: Purchase of Equipment (3,600-2,800) -800 Net Cash used in Investing Activities -800 Cash flow from Fiancing Activities: Issue of Notes payable (1,280-950) 330 Dividend Paid -3,271 Issue of Common Stock (1,180-1000) 180 Net Cash used in Fiancing Activities -2761 Net incresae (decrease) in Cash for the year $300 Cash Balance Jan-01 $400 Cash Balance Dec-31 $700 Note: Opening bal. of Retained Earnings =825 Add Net income =3,756 Less Closing Bal. of Retained Ear. = 1,310 Dividend Paid = 3,271