Presented below are the 2021 income statement and comparative balance sheets for Santana Industries. $20,450 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 15,650 Service revenue 4,800 Total revenue Operating expenses : Cost of goods sold 7,900 Selling expense 3,100 General and administrative expense 2,200 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 13,200 7,250 220 7,030 2,300 $ 4,730 Dec. 31, Dec. 31, 2021 2020 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred revenue $ 9,000 3,900 5,400 220 15,900 (5,800) $28,620 $ 2,830 2,900 3,700 440 13,400 (5,200) $18,070 $ 2,800 170 940 $ 1,800 0 670 Income before income taxes Income tax expense Net Income 7,030 2,300 54, 730 Dec. 31. 2021 Dec. 31. 2020 $ 9,000 3,900 5.400 220 15,900 (5.800) $28,620 5 2,830 2.900 3,700 440 13,400 (5.200) $18,070 Balance Sheet Information in thousands) Assets Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation 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 $ 2,800 170 940 620 6,400 10,700 6,990 $28,620 $ 1,800 0 670 940 0 10,700 3,960 $18,070 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,700 were declared and paid. 2. Equipment costing $5,400 was purchased with cash. 3. Equipment with a book value of $1,200 (cost of $2,900 less accumulated depreciation of $1,700) was sold for $1,200. 4. Depreciation of $2,300 is included in operating expenses. Required: Prepare Santana Industries 2021 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, 2021 (5 in thousands) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and abilities: Nel cash flows from operating activities Cash flows from investing activities: 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
