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) 17,250 Sales revenue $ Service revenue 6,400 $23,650 Total revenue Operating expenses: Cost of goods sold Selling General and administrative 8,700 3,900 3,000 15,600 Total operating expenses Operating income Interest expense 8,050 350 Income before income taxes Income tax expense 7,700 4,000 $ 3,700 Net income Balance Sheet Information ($ in thousands) Dec. 31. Dec. 31, 2016 2015 Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation $ 8,850 $ 3,550 5,500 3,700 7,000 4,500 300 600 17,500 15,000 (6,600) (6,000) Total assets $32,550 $21,350 Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2015) Common stock Retained earnings $ 4,400 $ 2,600 250 0 1,100 750 700 1,100 8,000 0 11,500 11,500 6,600 5,400 $32,550 $21,350 Total liabilities and shareholders' equity Additional information for the 2016 fiscal year ($ 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 $3,100 is included in operating expenses. Additional information for the 2016 fiscal year ($ 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 Statement of Cash Flows For the Year Ended December 31, 2016 (s in thousands)