Presented below is the 2018 income statement and comparative balance sheet infor
ID: 2340579 • Letter: P
Question
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, 2818 Sales revenue Operating expenses: $17,800 $5,480 448 Cost of goods sold Depreciation 1,180 3,800 Insurance Administrative and other Total operating expenses Income before income taxes Income tax expense Net income 10.746 6, 260 2,504 $3,756 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid insurance Plant and equipment Dec. 31,2818 Dec. 31, 2817 $ 78e 850 870 17e 3,69e $480 1,839 890 2,890 89e Less: Accumulated depreciation Total assets $4,95e $ 4,285 Liabilities and Shareholders Equity: Accounts payable Payables for administrative and other expenses Income taxes payable Note payable (due 12/31/2819) Common stock Retained earnings $488 490 380 1,280 1,18e ,310 $ 568 690 358 950 1,890 Total liabilities and shareholders equity $4,95e $ 4,285 Requlrec: Prepare Tiger's 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 Indlcated wlth a mlnus slgn.)Explanation / Answer
Staement of cash flow cash from operating activities Net income for the year 3,756 Adjustments to reconcile net income to cash from operating activities Depreciation expense 440 Decrease in accounts receivable 180 increase in inventory -70 increase in prepaid insurance -115 Decrease in accounts payable -160 decrease in payables for adminitrative and other exp -200 increase in income taxes payable 30 Net cash provided by operating activities 3,861 Net cash from investing activities cash paid for purchase of plant and equipment -800 Net cash used by investing activities -800 Net cash from financing activities cash from notes payable 330 cash from stock issue 180 Cash dividend paid -3,271 net cash used by financing activities -2,761 net increase in cash 300 cash at the beginning of the year 400 cash at year end 700 dividend payments is calculated as follows: opening retained earnings 825 add net income for the year 3,756 4581 less closing retained earnings -1,310 dividends paid 3271