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$16,050Service revenue5,200Total revenue$21,250Operating expenses:Cost of goods sold8,100Selling3,300General and administrative2,400Total operating expenses13,800Operating income7,450Interest expense290Income before income taxes7,160Income tax expense3,400Net income$3,760

Balance Sheet Information ($ in thousands)Dec. 31,

2018Dec. 31,

2017Assets:Cash$8,250$3,010Accounts receivable4,3003,100Inventory5,8003,900Prepaid rent240480Plant and equipment16,30013,800Less: Accumulated depreciation(6,000)(5,400)Total assets$28,890$18,890Liabilities and Shareholders' Equity:Accounts payable$3,200$2,000Interest payable1900Deferred service revenue980690Income taxes payable640980Loan payable (due 12/31/2020)6,8000Common stock10,90010,900Retained earnings6,1804,320Total liabilities and shareholders' equity$28,890$18,890

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

1. Cash dividends of $1,900 were declared and paid.
2. Equipment costing $5,800 was purchased with cash.
3. Equipment with a book value of $1,400 (cost of $3,300 less accumulated depreciation of $1,900) was sold for $1,400.
4. Depreciation of $2,500 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.