| Presented below is the 2016 income statement and comparative balance sheet information for Tiger Enterprises. |
| TIGER ENTERPRISES | ||||||
| Income Statement | ||||||
| For the Year Ended December 31, 2016 | ||||||
| ($ in thousands) | ||||||
| Sales revenue | $ | 7,000 | ||||
| Operating expenses: | ||||||
| Cost of goods sold | $ | 3,360 | ||||
| Depreciation | 240 | |||||
| Insurance | 100 | |||||
| Administrative and other | 1,800 | |||||
| Total operating expenses | 5,500 | |||||
| Income before income taxes | 1,500 | |||||
| Income tax expense | 600 | |||||
| Net income | $ | 900 | ||||
| Balance Sheet Information ($ in thousands) | Dec. 31, 2016 | Dec. 31, 2015 | ||||
| Assets: | ||||||
| Cash | $ | 300 | $ | 200 | ||
| Accounts receivable | 750 | 830 | ||||
| Inventory | 640 | 600 | ||||
| Prepaid insurance | 50 | 20 | ||||
| Plant and equipment | 2,100 | 1,800 | ||||
| Less: Accumulated depreciation | (840 | ) | (600 | ) | ||
| Total assets | $ | 3,000 | $ | 2,850 | ||
| Liabilities and Shareholders’ Equity: | ||||||
| Accounts payable | $ | 300 | $ | 360 | ||
| Payables for administrative and other expenses | 300 | 400 | ||||
| Income taxes payable | 200 | 150 | ||||
| Note payable (due 12/31/2017) | 800 | 600 | ||||
| Common stock | 900 | 800 | ||||
| Retained earnings | 500 | 540 | ||||
| Total liabilities and shareholders’ equity | $ | 3,000 | $ | 2,850 | ||
| Required: |
| 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.) |
