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) 15,850 Sales revenue 5,000 Service revenue $20,850 Total revenue Operating expenses: Cost of goods sold 8,000 Selling 3,200 General and administrative 2,300 Total operating expenses 13,500 Operating income 7,350 Interest expense 280 Income before income taxes 7,070 Income tax expense 3,300 3,770 Net income D2016' D2015 Balance Sheet Information in thousands) Assets Cash 8,150 2,920 Accounts receivable 4,100 3,000 5,600 3,800 nventory Prepaid rent 230 460 Plant and equipment 16,100 13,600 Less: Accumulated depreciation (5,900) (5,300) Total assets 28,280 18,480 Liabilities and Shareholders' Equity: 3,000 1,900 Accounts payable Interest payable 180 Deferred service revenue Income taxes payable Loan payable (due 12/31/2018) 960 680 630 960 6,600 10,800 10,800 Common stock Retained earnings 6,110 4,140 28,280 18,480 Total liabilities and shareholders' equity Additional information for the 2016 fiscal year in thousands): 1. Cash dividends of $1,800 were declared and paid. 2. Equipment costing $5,600 was purchased with cash. 3. Equipment with a book value of $1,300 (cost of $3,100 less accumulated depreciation of $1,800) was sold for $1,300 4. Depreciation of $2,400 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.)