In class practice problem Statement of Cash Flows - Tiger Enterprises Prepare a statement of cash flows using the indirect and the direct method. Prepare only the operating section for the direct method as investing and financing are the same regardless the method. Tiger Enterprises Complete Balance Sheet and Income Statement Data Balance Sheet: 2018 2017 Cash 300 200 Accounts receivable 750 Inventory 600 Prepaid Insurance 50 PP&E 2,100 1,800 Accumulated depreciation (840) (600) | Total assets $3,000 $2,850 830 640 20 Accounts payable Payables for Admin. & other exp Income taxes payable Note payable Common stock Retained earnings Total liabilities & Equity 300 300 200 800 900 500 $3,000 360 400 150 600 800 540 $2,850 $7,000 Income Statement: Sales revenue Operating expenses: Cost of goods sold Depreciation Insurance Administrative and other Total operating expenses Income before income taxes Income tax expense Net income $3,360 240 100 1.800 5.500 1,500 600 $ 900 Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Hint: Use T-accounts for the pertinent items to isolate the information needed for the statement.) TIGER ENTERPRISES Statement of Cash Flows - Indirect Method For the Year Ended December 31, 2018 ($ in thousands) Cash flows from operating activities: Net income Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 TIGER ENTERPRISES Statement of Cash Flows - Direct Method For the Year Ended December 31, 2018 (S in thousands) Cash flows from operating activities: Net cash flows from operating activities