2. Below are comparative balance sheets for Tigger Inc. at December 31, 2018 and

Question

2. Below are comparative balance sheets for Tigger Inc. at December 31, 2018 and 2017 1/31/2018 12/31/2017 S 21,900 10,0 ash 0,00 64,00 45.0 Land Plant assets Accumulated 580,000I 560.000 Accounts payable $90,00093,0 8.0 Dividends payable Payable for general & admin e Income tax payable Bonds payable 10,000 6.0 18,00 9,05 40,70 40,000 104. otes pavable Mort Common stock Retained e yable Additional information: e income statement for 2018 is as follows Sales Cost of sales Gross $150,000 fit Income before income tax 30,500 Net income i. The only changes to retained earnings were for net income and dividends declared for 2018 Accounts payable were used only for inventory purchases. ii. Plant assets were acqui by excha nging common stock. Of the operating expenses, $2,825 is for iV depreciation. v. Land was sold for cash of $27,500 Required Using the information above, prepare the Operating Activities section only of the calendar year 2018 Statement of Cash Flows for Tigger Inc. using the indirect method.

Explanation / Answer

Tigger Inc. Statement of Cash Flows (Partial) For the Year Ended December 31, 2018 Cash Flows from Operating Activities: Net income 27450 Adjustments to reconcile net income to net cash provided by operations: Depreciation expense 3000 Loss on sale of land 4500 Increase in Accounts Receivable -5000 Decrease in Inventory 6000 Decrease in Accounts payable -3000 Increase in Salaries payable 4000 Increase in payable for general & admin expenses 8000 Increase in income tax payable 3050 20550 Net cash provided by operating activities 48000

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