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

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

1. Cash dividends of $2,500 were declared and paid

2. Equipment costing $7,000 was purchased with cash

3. Equipment with a book value of $2,000 (cost of $4,500 less accumulated depreciation of $2,500) was sold for $2,000

4. Depreciation of $3,100 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 Income Statement For the Year Ended December 31, 2016 in thousands) Sales revenue 17,250 Service revenue 6.400 Total revenue Operating expenses Cost of goods sold 8.700 Selling 3.900 General and administrative 3.000 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 23,650 15,600 8.050 350 7,700 4,000 3,700