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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

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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) 45 points 17,850 Sales revenue Skipped Service revenue 7,000 Total revenue 24,850 eBook Print References Operating expenses: Cost of goods sold 9,000 4,200 3,300 Selling General and administrative Total operating expenses 16,500 Operating income Interest expense 8,350 380 Income before income taxes Income tax expense 7970 4,300 Net income 3,670 Balance Sheet Information ($ in thousands) Dec. 31, Dec. 31, 2016 2015 Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation $9,150 $3,820 6,100 4,000 7,600 4,800 660 18,100 15,600 (6,900) (6,300) 45 points Skipped Total assets $34,380 $22,580 eBook Liabilities and Shareholders' Equity: Accounts payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2015 Print $5,000 2,900 0 780 730 1160 ReferencesInterest payable 280 1,160 8,600 Common stock Retained earnings 11,800 11,800 6,810 5,940 Total liabilities and shareholders equity $34,380 $22,580 Additional information for the 2016 fiscal year ($ in thousands): 1. Cash dividends of $2,800 were declared and paid. 2. Equipment costing $7,600 was purchased with cash. Additional information for the 2016 fiscal year ($ 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' 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.) ed

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