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)
Sales revenue								$	7,660
Operating expenses:
Cost of goods sold		$	3,470
Depreciation			350
Insurance			210
Administrative and other			1,910
Total operating expenses									5,940
Income before income taxes									1,720
Income tax expense									710
Net income								$	1,010
Balance Sheet Information ($ in thousands)	Dec. 31,2018						Dec. 31, 2017
Assets:
Cash		$	410					$	310
Accounts receivable			860						940
Inventory			750						710
Prepaid insurance			105						75
Plant and equipment			2,650						2,350
Less: Accumulated depreciation			(1,060	)					(710	)
Total assets		$	3,715					$	3,675
Liabilities and Shareholders' Equity:
Accounts payable		$	410					$	470
Payables for administrative and other expenses			410						510
Income taxes payable			310						260
Note payable (due 12/31/2019)			910						710
Common stock			1,010						910
Retained earnings			665						815
Total liabilities and shareholders' equity		$	3,715					$	3,675

Required:
Prepare the cash flows from operating activities section of Tiger's 2018 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. (Hint: Use T-accounts for the pertinent items to isolate the information needed for the statement.) (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)
  

Answer 1