Cost of goods sold Depreciation Insurance Administrative and other
Total operating expenses
Income before income taxes Income tax expense
Net income
$7,000
5,500
1,500 600
$ 900
TIGER ENTERPRISES Income Statement For the Year Ended December 31, 2011
$3,360 240 100 1,800
(continued)
239
Spiceland-Sepe-Nelson: I. The Role of Accounting 4. The Income Statement © The McGraw-Hill Intermediate Accounting, Sixth Edition
Intermediate Accounting, as an Information System and Statement of Cash Companies, 2011 Sixth Edition Flows
(concluded)
E 4-23
Statement of cash flows; direct method ? LO11
E 4-24
FASB codification research ? LO8
CODE
E 4-25
FASB codification
research
? LO5 LO8 LO9 LO11
CODE
E 4-26
Concepts;
terminology
? LO1 through LO11
Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable
Dec. 31, 2011
Dec. 31, 2010
$ 200 830 600 20 1,800
(600)
$2,850
$ 360 400 150 600 800 540
$2,850
Prepaid insurance Plant and equipment
Less: Accumulated depreciation
Total assets
Liabilities and Shareholders' Equity:
Accounts payable Payables for administrative and other expenses Income taxes payable Note payable (due 12/31/2012) Common stock Retained earnings
Total liabilities and shareholders' equity
Required:
50 2,100 (840)
$3,000
$ 300 300 200 800 900 500
$3,000
CHAPTER 4 The Income Statement and Statement of Cash Flows 217
$ 300 750 Inventory 640
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.)