Question

and cash equivalents, January 1 Cash and cash equivalents, December 31 28,600 $233,000 Required: Prepare the statement of cash flows assuming that Bronco prepares its financial statements according to Inter- national Financial Reporting Standards. Where IFRS allows flexibility, use the classification used most often in IFRS financial statements. Presented'below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises. TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $7,000 Operating expenses: Cost of goods sold AU $3,360 nuy ment 240 100 Depreciation expense Insurance expense General and administrative expense 1,800 5,500 Total operating expenses 1,500 Income before income taxes (600) Income tax expense $900 Net income Dec. 31, 2020 Dec. 31, 2021 Balance Sheet Information ($ in thousands) $ 200 830 ve Assets: $ 300 Accounts receivable OP evts atos Inventory Prepaid insurance 0 Equipment tntve Cash 750 DP 600 640 OPaagin autivities 20 1,800 (600) 50 2,100 (840) Less: Accumulated depreciation $2,850 $3,000 Total assets Liabilities and Shareholders' Equity: $ 360 400 150 600 $ 300ne OPen 187TVI es verkt An altivaties Accounts payable Accrued liabilities (for generăL& admih. expense) Oyerat Income taxes payable Notes payable (due 12/31/2022) Common stock Retained earnings 300 200 800 he11ies Tnvest 800 900 540 500 tlo Fin Total liabilities and shareholders' equity $2,850 $3,000 Required: Prepare Tiger's statement of cash flows, using the indirect method to present cash flows from operating a ties. (Hint: You will have to catcutame dividend payments). Refer to the situation described in E 4-20. Required:

Answer 1

	Cash Flow Statement (Indirect Method)
	Particulars	Amount	Amount
	Profit before income tax		$        1,500.00
	Adjustments to reconcile net income to:
	Net cash provided by operating activities
	Depreciation expense	$           240.00
	Decrease in Accounts Receivable	$              80.00
	Increase in Inventory	$            (40.00)
	Increase in Prepaid Insurance	$            (30.00)
	Decrease in Accounts Payable	$            (60.00)
	Decrease in Accrued Liabilities	$          (100.00)
	Increase in Income Tax Payable	$              50.00
			$           140.00
Less:	Income Tax Expense		$          (600.00)
	Net Cash Generated		$          (460.00)
	Net cash provided by operating activities	(A)	$        1,040.00
	Cash Flows from Investing Activities
	Purchase Equipment	$          (300.00)
	Net cash provided by investing activities	(B)	$         (300.00)
	Cash Flows from Financing Activities
	Increase in Notes Payable	$           200.00
	Common stock issued	$           100.00
	Dividend Paid (W.N.1)	$          (940.00)
	Net cash provided by Financing activities	(C')	$         (640.00)
	Net increase/decrease in cash	(A+B+C')	$           100.00
	Add:Opening cash balance		$           200.00
	Closing cash balance		$           300.00

	W.N.1
	Beginning Balance of Retained Earnings				$ 540.00
Add:	Net Income				$ 900.00
Less:	Ending Balance of Retained Earnings				$(500.00)
	Dividend Paid				$ 940.00