$19,650 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 15,250 Service revenue 4,400 Total revenue Operating expenses : Cost of goods sold 7,700 Selling expense 2,900 General and administrative expense 2,000 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 12,600 7,050 200 6,850 2,100 $ 4,750 Dec. 31, 2021 Dec. 31, 2020 $ 8,800 3,500 5,000 200 15,500 (5,600) $27,400 $ 2,650 2,700 3,500 400 13,000 (5,000) $17, 250 Balance Sheet Information ($ 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 $ 2,400 150 900 600 6,000 10,500 6,850 $27,400 $ 1,600 0 650 900 0 10,500 3,600 $17,250 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,500 were declared and paid. 2. Equipment costing $5,000 was purchased with cash. 3. Equipment with a book value of $1,000 (cost of $2,500 less accumulated depreciation of $1,500) was sold for $1,000. 4. Depreciation of $2,100 is included in operating expenses. SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31