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 Service revenue 7,200 $ 18,050 $ 25,250 Total revenue Operating expenses: Cost of goods sold Selling General and administrative 9,100 4,300 3,400 nces Total operating expenses 16.800 Operating income Interest expense 8,450 390 Income before income taxes Income tax expense 8,060 4.400 Net income $3,660 Balance Sheet Information ($ in thousands) Dec. 31. Dec. 31. 2016 2015 $ Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation 3,910 4.100 4.900 $ 9.250 6,300 7,800 340 18.300 (7.000) 680 15,800 (6,400) Prev 1 of 3 Balance Sheet Information ($ in thousands) Dec. 31. Dec. 31. 2016 2015 Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation $ 9,250 $ 3.910 6,300 4,100 7,800 4.900 340680 18,300 15,800 (7,000) (6.400) Total assets $34.990 $22,990 Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2015) Common stock Retained earnings $ 5,200 $ 3,000 290 1,180 790 740 1,180 8,800 11,900 11.900 6,880 6,120 Total liabilities and shareholders' equity $34.990 $22.990 Additional information for the 2016 fiscal year ($ in thousands): 1. Cash dividends of $2.900 were declared and paid. 2. Equipment costing $7.800 was purchased with cash. 3. Equipment with a book value of $2,400 (cost of $5,300 less accumulated depreciation of $2.900) was sold for $2,400. 4. Depreciation of $3,500 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.) SANTANA INDUSTRIES Statement of Cash Flows Von Enroere Prev 1 of