Exercise 4-20 (Static) Statement of cash flows; indirect method [LO4-8]

Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises.

TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2021
($ in thousands)
Sales revenue								$	7,000
Operating expenses:
Cost of goods sold		$	3,360
Depreciation expense			240
Insurance expense			100
General and administrative expense			1,800
Total operating expenses									5,500
Income before income taxes									1,500
Income tax expense									(600	)
Net income								$	900
Balance Sheet Information ($ in thousands)	Dec. 31,2021						Dec. 31, 2020
Assets:
Cash		$	300					$	200
Accounts receivable			750						830
Inventory			640						600
Prepaid insurance			50						20
Equipment			2,100						1,800
Less: Accumulated depreciation			(840	)					(600	)
Total assets		$	3,000					$	2,850
Liabilities and Shareholders' Equity:
Accounts payable		$	300					$	360
Accrued liabilities (for general & administrative expense)			300						400
Income taxes payable			200						150
Notes payable (due 12/31/2022)			800						600
Common stock			900						800
Retained earnings			500						540
Total liabilities and shareholders' equity		$	3,000					$	2,850

Required: Prepare Tigers statement of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus sign.)

Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Changes in operating assets and liabilities: Decrease in accounts receivable Increase in inventory Increase in prepaid insurance Decrease in accounts payable Decrease in accrued liabilities Increase in income taxes payable Net cash flows from operating activities $0 Cash flows from investing activities: Purchase of equipment Net cash flows from investing activities 0 Cash flows from financing activities: Dividends paid to shareholders Net cash flows from financing activities 0 Net increase in cash 0 Cash, January 1 Cash, December 31 $