Presented below are the 2021 income statement and comparative balance sheets for Santana Industries.

SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands)
Sales revenue	$	17,250
Service revenue		6,400
Total revenue				$	23,650
Operating expenses:
Cost of goods sold		8,700
Selling expense		3,900
General and administrative expense		3,000
Total operating expenses					15,600
Operating income					8,050
Interest expense					300
Income before income taxes					7,750
Income tax expense					3,100
Net income				$	4,650

Balance Sheet Information ($ in thousands)	Dec. 31, 2021				Dec. 31, 2020
Assets:
Cash	$	9,800			$	3,550
Accounts receivable		5,500				3,700
Inventory		7,000				4,500
Prepaid rent		300				600
Equipment		17,500				15,000
Less: Accumulated depreciation		(6,600	)			(6,000	)
Total assets	$	33,500			$	21,350
Liabilities and Shareholders Equity:
Accounts payable	$	4,400			$	2,600
Interest payable		250				0
Deferred revenue		1,100				750
Income taxes payable		700				1,100
Notes payable (due 12/31/2023)		8,000				0
Common stock		11,500				11,500
Retained earnings		7,550				5,400
Total liabilities and shareholders' equity	$	33,500			$	21,350

Additional information for the 2021 fiscal year ($ in thousands):

1. Cash dividends of $2,500 were declared and paid.
2. Equipment costing $7,000 was purchased with cash.
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.