Presented below is the 2018 income statement and comparative balance sheet infor
ID: 2592123 • 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, 2018 $ in thousands) $11,500 Sales revenue Operating expenses: $4,300 330 550 2,700 Cost of goods sold Depreciation Insurance Administrative and other Total operating expenses 7,880 3,620 1,448 $ 2,172 Income before income taxes Income tax expense Net income Balance Sheet Information ($ in thousands) Assets Cash Accounts receivable Inventory Prepaid insurance Plant and equipment Dec. 31,2018 Dec. 31, 2017 $ 480 795 775 140 3,000 $290 920 690 65 2,250 690 $ 3,525 Less: Accumulated depreciation (1,020) Total assets 4,170 Liabilities and Shareholders Equity: Accounts payable Payables for administrative and other expenses Income taxes payable Note payable (due 12/31/2019) Common stock Retained earnings $345 $ 450 490 260 1,120 1,080 1,020 $ 4,170 240 800 890 655 Total 1iabilities and shareholders' equity $ 3,525Explanation / Answer
Statement of cash flow :
Cash flow from operating activity Net income 2172 Adjustment to reconcile net income Depreciation exp 330 Decrease account receivable 125 Increase inventory (85) Increase prepaid insurance (75) Decrease account payable (105) Decrease payable for selling and administrative (145) Increase income tax payable 20 Net cash flow from operating activities 2237 Cash flow from investing activities Increase plant and equipment (750) Net cash flow from investing activity (750) Cash flow from financing activity Borrowing notes payable 320 Issue common stock 190 Dividend paid (1807) Net cash flow from finacing activity (1297) Net cash flow 190 beginning cash 290 Ending cash 480