Presented below are the 2021 income statement and comparative balance sheets for Santana Industries. $21,250 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 16,050 Service revenue 5,200 Total revenue Operating expenses: Cost of goods sold 8,100 Selling expense 3,300 General and administrative expense 2,400 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 13,800 7,450 240 7,210 2,500 $ 4,710 Dec. 31, Dec. 31, 2021 2020 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation $ 9,200 4,300 5,800 240 16,300 (6,000) $29,840 $ 3,010 3,100 3,900 480 13,800 (5,400) $18,890 $ 3,200 190 980 Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due 12/31/2023) Common stock Retained earnings Total liabilities and shareholders' equity 640 6,800 10,900 7,130 $29,840 $ 2,000 0 690 980 0 10,900 4,320 $18,890 Additional information for the 2021 fiscal year ($ 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 $2,500 is included in operating expenses. SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31