Question

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 Incone Satenent To the Year Ended December 31, 2021 ( in thousands) Sales Eevenue Operating expenses: Core of goods old Depreciation expense Insurance capense General and administrative expense Total operating expenses Income before income taxes Income tax expense 6 100 1,800 N $1,050 income Balance sheet Internation in thousands) Dec. 31, 2021 Dec 1, 2020 $ 250 450 900 790 980 750 2.850 (1140) 2.550 (750) $ 3.995 $2.975 Cash Account Eceivable Inventory Prepaid insurance Equipment Less: Accumulated depreciation Total assets Liabilities and shareholders' Equity Accounts payable Accrued liabilities to general administrative exp Income tax payable Notes payable (due 12/01/2022) Conon stock Retained earnings Total liabilities and shareholders' equity 450 $ 10 450 550 300 350 750 950 1,050 725 $ 3.925 950 915 $3,975 Required: Prepare the cash flows from operating activities section of Tiger's 2021 statement of cash flows using the drect method. Assume that all

Answer 1

S 1.340 Tiger Enterprises Statement of Cash Flows For the Year Ended December 31, 2021 (S in Thousands ) Cash Flows from operating activities: Cash Receipts from Customers $ 7,980 Cash Paid for Supplies $ (3,610) Cash paid for General and administrative Expenses S (2,050) Cash paid for Insurance Expense $ (280) Cash paid for Income Tax Expnses $ (700) Net Cash flow from operating activities Note : 1 Cash Receipts from Customers Beginning Balance of Accounts Receivables S 980 Add sales $ 7,900 S 8.880 Less: Closing Balance of Accounts Receivables $ 900 $ 7,980 2 Cash paid for Suplies Cost of Goods sold $ 3,510 Add Beginning accounts payable $ 510 $ 4,020 Less: Ending accounts payable S 450 $ 3,570 Add: Closig Inventory $ 790 Less: Opening inventory $ 750 $ 3.610

3 Cash paid for General and administrative Expenses Opening Accured liabilities Add: general and administrative expense S $ Less; ending accured liabiloities S $ 4 Cash paid for Insurance Expense Closing balance of prepaid insurance Add: Insurance Expense 550 1.950 2,500 450 2,050 125 250 375 Less: beginning balance of prepaid insurance 95 280 5 Cash paid for Income Tax Expenes Beginning balance of Income Tax Payable Add: Income tax Expenses during the year 200 750 950 250 Less: Income Tax payable end of the year 700