$20,450 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue $ 15,650 Service revenue 4,800 Total revenue Operating expenses: Cost of goods sold 7,900 Selling 3,100 General and administrative 2,200 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 13,200 7,250 270 6,980 3,200 $ 3,780 Dec. 31, 2018 Dec. 31, 2017 $ 8,050 3,900 5,400 220 15,900 (5,800) $27,670 $ 2,830 2,900 3,700 440 13,400 (5,200) $ 18,070 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2020) Common stock Retained earnings Total liabilities and shareholders' equity $ 1,800 0 670 940 $ 2,800 170 940 620 6,400 10, 700 6,040 $ 27,670 10,700 3,960 $18,070 Additional information for the 2018 fiscal year ($ in thousands): 1. Cash dividends of $1,700 were declared and paid. 2. Equipment costing $5,400 was purchased with cash. 3. Equipment with a book value of $1,200 (cost of $2,900 less accumulated depreciation of $1,700) was sold for $1,200. 4. Depreciation of $2,300 is included in operating expenses. Required: Prepare Santana Industries' 2018 statement of cash flows, using the indirect method to present cash flows from operating (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2018 ($ in thousands)