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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
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 $ 17,850 Service revenue 7,000 Total revenue $ 24,850 Operating expenses: Cost of goods sold 9,000 Selling 4,200 General and administrative 3,300 Total operating expenses 16,500 Operating income 8,350 Interest expense 380 Income before income taxes 7,970 Income tax expense 4,300 Net income $ 3,670 Balance Sheet Information ($ in thousands) Dec. 31, 2013 Dec. 31, 2012 Assets: Cash $ 9,150 $ 3,820 Accounts receivable 6,100 4,000 Inventory 7,600 4,800 Prepaid rent 330 660 Plant and equipment 18,100 15,600 Less: Accumulated depreciation (6,900 ) (6,300 ) Total assets $ 34,380 $ 22,580 Liabilities and Shareholders Equity: Accounts payable $ 5,000 $ 2,900 Interest payable 280 0 Unearned service revenue 1,160 780 Income taxes payable 730 1,160 Loan payable (due 12/31/2015) 8,600 0 Common stock 11,800 11,800 Retained earnings 6,810 5,940 Total liabilities and shareholders' equity $ 34,380 $ 22,580 Additional information for the 2013 fiscal year ($ in thousands): 1. Cash dividends of $2,800 were declared and paid. 2. Equipment costing $7,600 was purchased with cash. 3. Equipment with a book value of $2,300 (cost of $5,100 less accumulated depreciation of $2,800) was sold for $2,300. 4. Depreciation of $3,400 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.)
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