Reference no: EM131960955

Problem

Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue $ 10,000 Operating expenses: Cost of goods sold $ 4,000 Depreciation 300 Insurance 400 Administrative and other 2,400 Total operating expenses 7,100 Income before income taxes 2,900 Income tax expense 1,160 Net income $ 1,740 Balance Sheet Information ($ in thousands) Dec. 31,2018 Dec. 31, 2017 Assets: Cash $ 420 $ 260 Accounts receivable 780 890 Inventory 730 660 Prepaid insurance 110 50 Plant and equipment 2,700 2,100 Less: Accumulated depreciation (960 ) (660 ) Total assets $ 3,780 $ 3,300 Liabilities and Shareholders' Equity: Accounts payable $ 330 $ 420 Payables for administrative and other expenses 330 460 Income taxes payable 230 210 Note payable (due 12/31/2019) 1,160 900 Common stock 1,020 860 Retained earnings 710 450 Total liabilities and shareholders' equity $ 3,780 $ 3,300.

Required: Prepare Tiger's statement of cash flows, using the indirect method to present cash flows from operating activities.