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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):
- Cash dividends of $2,400 were declared and paid.
- Equipment costing $6,800 was purchased with cash.
- Equipment with a book value of $1,900 (cost of $4,300 less accumulated depreciation of $2,400) was sold for $1,900.
- 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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