Presented below is the 2018 income statement and comparative balance sheet infor

Question

Presented below is the 2018 income statement and comparative balance sheet information for Tiger Enterprises. Income Statement For the Year Ended December 31, 2018 Operating expenses: Cost of goods sold Depreciation $ 4,080 300 400 2,408 Administrative and other Total operating expenses Income before income taxes Income tax expense 7,180 2,989 1,160 $ 1,740 Balance Sheet Information ($in thousands) Dec. 31,2018 Cash $ 420 780 730 110 2,780 s 260 890 Inventory Prepaid insurance Plant and equipment 2,100 Less: Accumulated Total assets depreciation s 3,780 Liabilities and Shareholders' Equity: 5 330 330 $ 420 210 860 Income taxes payable Note payable (due 12/31/2819) 1,160 1,020 450 Total 1iabilities and shareholders' equity Required: Prepare Tiger's stat to calculate dividend payments). (Enter your answers in thousands. Amounts to be deducted should be indicated with a minus of cash flows, using the indirect method to present cash flows from operating activities. (Hint: You will have TIGER ENTE

Explanation / Answer

Cash flow indirect method Cash flow from operating activities Net income 1740 Adjustments to reconcile the net income Depreciation expense 300 Changes in current asset and liabilities Increase in prepaid insurance -60 decrease in accounts receivable 110 Increase in Inventory -70 decrease in accounts payable -90 Increase in Income tax payable 20 Increase Payable for admin and other -130 Increase in notes payable 260 340 Cash flow from operating activities 2080 Cash flow from Investing activities Equipment purchased -600 Cash flow from Investing activities -600 Cash flow from Financing activities Common stock 160 Paid in capital in excess of par Dividend paid -1480 Cash flow from Financing activities -1320 Net Cash and cash equivalent 160 Add Beginning cash and cash equivalent 260 Ending cash and cash equivalent 420

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