Reference no: EM132833290

Question - TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands)

Sales revenue $7,960

Operating expenses:

Cost of goods sold $3,520

Depreciation expense 400

Insurance expense 260

General and administrative expense 1,960

Total operating expenses 6,140

Income before income taxes 1,820

Income tax expense (760)

Net income $1,060

Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020

Assets: Cash $460 $360

Accounts receivable $910 $990

Inventory 800 760

Prepaid insurance 130 100

Equipment 2,900 2,600

Less: Accumulated depreciation (1,160) (760)

Total assets $4,040 $4,050

Liabilities and Shareholders' Equity:

Accounts payable $460 $520

Accrued liabilities (for general & administrative expense) 460 560

Income taxes payable 360 310

Notes payable (due 12/31/2022) 960 760

Common stock 1,060 960

Retained earnings 740 940

Total liabilities and shareholders' equity $4,040 $4,050

Required - Do the cash flows from operating activities section of Tiger's 2021 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable.