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 Sales revenue Service revenue Total revenue ($ in thousands) Operating expenses: Cost of goods sold $17,250 6,400 $23,650 8,700 Selling 3,900 General and administrative 3,000 Total operating expenses 15,600 Operating income 8,050 Interest expense 350 Income before income taxes 7,700 Income tax expense 4,000 Net income $ 3,700 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2020) Dec. 31, 2018 Dec. 31, 2017 $ 8,850 5,500 $ 3,550 3,700 7,000 4,500 300 600 17,500 15,000 (6,600) (6,000) $32,550 $21,350 $ 4,400 $ 2,600 250 1,100 700 8,000 0 750 1,100 0 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable. Loan payable (due 12/31/2020) Common stock Retained earnings Total liabilities and shareholders' equity Additional information for the 2018 fiscal year ($ in thousands): 1. Cash dividends of $2,500 were declared and paid. 2. Equipment costing $7,000 was purchased with cash. Dec. 31, 2018 Dec. 31, 2017 $ 8,850 $ 3,550 5,500 3,700 7,000 4,500 300 600 17,500 15,000 (6,600) (6,000) $32,550 $21,350 $ 4,400 $ 2,600 250 0 700 8,000 750 1,100 8 11,500 11,500 6,600 $32,550 5,400 $21,350 1,100 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 $3,100 is included in operating expenses. Required: Prepare Santana Industries' 2018 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows Required: Prepare Santana Industries' 2018 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2018 ($ in thousands) $ 0