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Presented below are the 2018 income statement and comparative balance sheets for Santana Industries. SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018

Presented below are the 2018 income statement and comparative balance sheets for Santana Industries.

SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in thousands)
Sales revenue $ 17,050
Service revenue 6,200
Total revenue $ 23,250
Operating expenses:
Cost of goods sold 8,600
Selling 3,800
General and administrative 2,900
Total operating expenses 15,300
Operating income 7,950
Interest expense 340
Income before income taxes 7,610
Income tax expense 3,900
Net income $ 3,710

Balance Sheet Information ($ in thousands) Dec. 31, 2018 Dec. 31, 2017
Assets:
Cash $ 8,750 $ 3,460
Accounts receivable 5,300 3,600
Inventory 6,800 4,400
Prepaid rent 290 580
Plant and equipment 17,300 14,800
Less: Accumulated depreciation (6,500 ) (5,900 )
Total assets $ 31,940 $ 20,940
Liabilities and Shareholders Equity:
Accounts payable $ 4,200 $ 2,500
Interest payable 240 0
Deferred service revenue 1,080 740
Income taxes payable 690 1,080
Loan payable (due 12/31/2020) 7,800 0
Common stock 11,400 11,400
Retained earnings 6,530 5,220
Total liabilities and shareholders' equity $ 31,940 $ 20,940

Additional information for the 2018 fiscal year ($ in thousands):

  1. Cash dividends of $2,400 were declared and paid.
  2. Equipment costing $6,800 was purchased with cash.
  3. Equipment with a book value of $1,900 (cost of $4,300 less accumulated depreciation of $2,400) was sold for $1,900.
  4. Depreciation of $3,000 is included in operating expenses.

Required: Prepare Santana Industries' 2018 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.)

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