$18,450 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 14,650 Service revenue 3,800 Total revenue Operating expenses Cost of goods sold 7,400 Selling expense 2,600 General and administrative expense 1,700 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 11,700 6,750 170 6,580 1,800 $ 4,780 Dec. 31, 2021 Dec. 31, 2020 $ 8,500 2,900 4,400 170 14,900 (5,300) $25,570 $ 2,380 2,400 3,200 340 12,400 (4,700) $16,020 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Liabilities and shareholders' Equity: Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due 12/31/2023) Common stock Retained earnings Total liabilities and shareholders' equity $ 1,300 $ 1,800 120 840 570 5,400 10,200 6,640 $25,570 620 840 0 10,200 3,060 $16,020 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,200 were declared and paid. 2. Equipment costing $4,400 was purchased with cash. 3. Equipment with a book value of $700 (cost of $1,900 less accumulated depreciation of $1,200) was sold for $700. 4. Depreciation of $1,800 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. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 (5 in thousands) Cash flows from operating activities: Net income $ 4.780 Adjustments for noncash effects: Depreciation expense 1,800 Changes in operating assets and liabilities: $ 6,580 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities 0 6,580 Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 $ 6,580