Presented below are the 2021 income statement and comparative balance sheets for Santana Industries.

Additional information for the 2021 fiscal year ($ in thousands):1. Cash dividends of $1,000 were declared and paid.2. Equipment costing $4,000 was purchased with cash.3. Equipment with a book value of $500 (cost of $1,500 less accumulated depreciation of $1,000) was sold for $500.4. Depreciation of $1,600 is included in operating expenses.

Required:Prepare Santana Industries? 2021 statement of cash flows, using the indirect method to present cash flows from operating activities. Use a format similar to the one in the Concept Review Exercise at the end of Part B of this chapter.

SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) $14,250 Sales revenue Service revenue 3,400 $17,650 Total revenue Operating expenses: Cost of goods sold Selling expense General and administrative expense Total operating expenses 7,200 2,400 1,500 11,100 Operating income Interest expense 6,550 150 Income before income taxes 6,400 Income tax expense 1,600 $ 4,800 Net income Balance Sheet Informatlon ($ in thousands) Dec. 31, 2021 Dec. 31, 2020 Assets: $ 2,200 $ 8,300 Cash Accounts receivable 2,500 4,000 2,200 3,000 Inventory Prepaid rent Equipment Less: Accumulated depreciation 150 300 14,500 (5,100) 12,000 (4,500) $24,350 $15,200 Total assets Liabilities and shareholders' equity: Accounts payable Interest payable $ 1,400 $ 1,100 100 600 Deferred revenue 800 Income taxes payable Notes payable (due 12/31/2023) Common stock 550 800 5,000 10,000 10,000 Retained earnings 6,500 2,700 Total liabilities and shareholders' equity $24,350 $15,200