Presented below are the $2016$ income statement and comparative balance sheets for Santana Industries.

SANTANA INDUSTRIES

Income Statement

For the Year Ended December $31,2016$

$($$ in thousands$)$

Sales revenue $ $17,450$

Service revenue $6,600$

Total revenue $ $24,050$

Operating expenses:

Cost of goods sold $8,800$

Selling $4,000$

General and administrative $3,100$

Total operating expenses $15,900$

Operating income $8,150$

Interest expense $360$

Income before income taxes $7,790$

Income tax expense $4,100$

Net income $ $3,690$

Balance Sheet Information $($$ in thousands$)$ Dec. $31,$

$2016$ Dec. $31,$

$2015$

Assets:

Cash $ $8,950$ $ $3,640$

Accounts receivable $5,7003,800$

Inventory $7,2004,600$

Prepaid rent $310620$

Plant and equipment $17,70015,200$

Less: Accumulated depreciation $(6,700)(6,100)$

Total assets $ $33,160$ $ $21,760$

Liabilities and Shareholders$$ Equity:

Accounts payable $ $4,600$ $ $2,700$

Interest payable $2600$

Deferred service revenue $1,120760$

Income taxes payable $7101,120$

Loan payable $($due $12/31/2018)8,2000$

Common stock $11,60011,600$

Retained earnings $6,6705,580$

Total liabilities and shareholders' equity $ $33,160$ $ $21,760$

Additional information for the $2016$ fiscal year $($$ in thousands$)$:

$1.$ Cash dividends of $$2,600$ were declared and paid.

$2.$ Equipment costing $$7,200$ was purchased with cash.

$3.$

Equipment with a book value of $$2,100($cost of $$4,700$ less accumulated depreciation of $$2,600)$ was sold for $$2,100.$

$4.$ Depreciation of $$3,200$ is included in operating expenses.

Required:

Prepare Santana Industries' $2016$ 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.$)$