Homework Help is Here – Start Your Trial Now!
Business
Accounting
Exercise 4-21 (Algo) 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 $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 2$ 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 80 660 50 2,400 |(960) $3,390 2,100 (660) Total assets $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock Retained earnings 360 420 360 460 260 210 860 660 960 860 590 690 Total liabilities and shareholders' equity $3,390 $3,300

Exercise 4-21 (Algo) 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 $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 2$ 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 80 660 50 2,400 |(960) $3,390 2,100 (660) Total assets $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock Retained earnings 360 420 360 460 260 210 860 660 960 860 590 690 Total liabilities and shareholders' equity $3,390 $3,300

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter15: Statement Of Cash Flows
Section: Chapter Questions
Problem 5PB: Statement of cash flowsdirect method applied to PR 13-1B The comparative balance sheet of Merrick...
See similar textbooks
icon
Related questions
Question
100%
Need help calculating.So I can study correct method
Exercise 4-21 (Algo) 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 ed ($ in thousands) Sales revenue $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 660 80 50 2,400 (960) 2,100 (660) Total assets $3,390 $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) 360 420 360 460 260 210 860 660 Common stock 960 860 Retained earnings 590 690 Total liabilities and shareholders' equity $3,390 $3,300
Transcribed Image Text:Exercise 4-21 (Algo) Statement of cash flows; direct method [LO4-8] Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ed ($ in thousands) Sales revenue $7,360 Operating expenses: Cost of goods sold Depreciation expense Insurance expense General and administrative expense Total operating expenses Income before income taxes $3,420 300 160 1,860 5,740 1,620 (660) Income tax expense Net income 960 Balance Sheet Information ($ in thousands) Dec. 31,2021 Dec. 31, 2020 Assets: Cash 360 260 Accounts receivable 810 890 Inventory Prepaid insurance Equipment Less: Accumulated depreciation 700 660 80 50 2,400 (960) 2,100 (660) Total assets $3,390 $3,300 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) 360 420 360 460 260 210 860 660 Common stock 960 860 Retained earnings 590 690 Total liabilities and shareholders' equity $3,390 $3,300
Prepaid insurance Equipment Less: Accumulated depreciation 80 50 2,400 (960) 2,100 (660) $3,300 Total assets $3,390 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock 360 420 460 210 360 260 860 660 860 690 960 Retained earnings 590 Total liabilities and shareholders' equity $3,390 $3,300 Required: Prepare the cash flows from operating activities section of Tiger's 2021 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) TIGER ENTERPRISES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash received from customers 3.460 X Cash paid for merchandise 3,520 X Cash paid for general and administrative expense 130 X Cash paid for insurance 1,960 X Cash paid for income taxes 610 X Net cash flows from operating activities 9,680 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Transcribed Image Text:Prepaid insurance Equipment Less: Accumulated depreciation 80 50 2,400 (960) 2,100 (660) $3,300 Total assets $3,390 Liabilities and Shareholders' Equity: Accounts payable Accrued liabilities (for general & administrative expense) Income taxes payable Notes payable (due 12/31/2022) Common stock 360 420 460 210 360 260 860 660 860 690 960 Retained earnings 590 Total liabilities and shareholders' equity $3,390 $3,300 Required: Prepare the cash flows from operating activities section of Tiger's 2021 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) TIGER ENTERPRISES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Cash received from customers 3.460 X Cash paid for merchandise 3,520 X Cash paid for general and administrative expense 130 X Cash paid for insurance 1,960 X Cash paid for income taxes 610 X Net cash flows from operating activities 9,680 *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Techniques of Time Value Of Money
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS