E 4-22 Statement of cash flows; indirect method
Presented below is the 2011 income statement and comparative balance sheet information for Tiger Enterprises.

TIGER ENTERPRISES
Income Statement
For the Year Ended December 31, 2011
($ 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, 2011 Dec. 31, 2010
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 12/31/2012) 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.)