Exercise 4-21 (Static) 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
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 the cash flows from operating activities section of Tigers 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. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)

Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash received from customersselected answer correct 7,080selected answer correct Cash paid for merchandiseselected answer correct not attempted Cash paid for income taxesselected answer correct not attempted Cash paid for insuranceselected answer correct not attempted Cash paid for general and administrative expensesselected answer correct not attempted not attempted not attempted Net cash flows from operating activities $7,0800