Presented below are the 2013 income statement and comparative balance sheets for Santana Industries SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2013 ($ in thousands) Sales revenue $16,850 Service revenue 6,000 Total revenue $22,850 Operating expenses: Cost of goods sold 8,500 Selling 3,700 General and 2,800 administrative Total operating 15,000 expenses Operating Income Interest expense 7,850 330 Income before income taxes Income tax expense 7,520 3,800 Net Income $ 3,720 Dec. 31, 2012 Balance Sheet Information ($ In thousands) Dec. 31, 2013 Assets: Cash $ 8,650 Accounts receivable 5,100 Inventory 6,600 Prepaid rent 280 Plant and equipment 17,100 Less: Accumulated depreciation (6,400) $ 3,370 3,500 4,300 560 14,600 (5,800) Total assets $31,330 $20,530 Llabilities and Shareholders' Equity: Dec. 31, 2012 Balance Sheet Information ($ in thousands) Dec. 31, 2013 Assets: Cash $ 8,650 Accounts receivable 5,100 Inventory 6,600 Prepaid rent 280 Plant and equipment 17,100 Less: Accumulated depreciation (6,400) $ 3,370 3,500 4,300 560 14,600 (5,800) Total assets $31,330 $20,530 Llabilities and Shareholders' Equity: Accounts payable Interest payable Unearned service revenue Income taxes payable Loan payable (due 12/31/2015) Common stock Retained earnings $ 4,000 230 1,060 680 7,600 11,300 6,460 $ 2,400 0 730 1,060 0 11,300 5,040 Total liabilities and shareholders' equlty $31,330 $20,530 Additional Information for the 2013 fiscal year ($ in thousands): 1. Cash dividends of $2,300 were declared and pald. 2. Equipment costing $6,600 was purchased with cash. 3. Equipment with a book value of $1,800 (cost of $4,100 less accumulated depreciation of $2,300) was sold for $1,800. 4. Depreciation of $2,900 is included in operating expenses. Required: Prepare Santana Industries' 2013 statement of cash flows, using the Indirect method to present cash flows from operating activities. (Amounts to be deducted should be Indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2013 Required: Prepare Santana Industries' 2013 statement of cash flows, using the Indirect method to present cash flows from operating activities. (Amounts to be deducted should be Indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2013 ($ 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 Cash, January 1 Cash, December 31
