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 Sales revenue ($ in thousands) $ 15,450 Service revenue Total revenue Operating expenses: 4,600 $20,050 Cost of goods sold Selling expense Total operating expenses Operating income Interest expense Income tax expense Income before income taxes 7,800 3,000 General and administrative expense 2,100 12,900 7,150 210 Net income 6,940 2,200 $ 4,740 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 Dec. 31, 2021 Dec. 31, 2020 $ 8,900 3,700 5,200 $ 2,740 2,800 3,600 210 420 15,700 13,200 (5,700) (5,100) $28,010 $17,660 $ 2,600 $ 1,700 160 0 920 660 610 920 6,200 0 10,600 10,600 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 $ 2,600 $ 1,700 160 0 920 660 610 920 6,200 0 10,600 10,600 6,920 $28,010 3,780 $17,660 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,600 were declared and paid. 2. Equipment costing $5,200 was purchased with cash. 3. Equipment with a book value of $1,100 (cost of $2,700 less accumulated depreciation of $1,600) was sold for $1,100. 4. Depreciation of $2,200 is included in operating expenses. Required: Prepare Santana Industries' 2021 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense Changes in operating assets and liabilities: $ 4,740 2,200 SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Net income Adjustments for noncash effects: ($ in thousands) Depreciation expense Changes in operating assets and liabilities: Increase in accounts receivable $ 4,740 2,200 Net cash flows from operating activities $ 6,940 Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: 0 Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: FA $ 6,940 0 Net cash flows from financing activities 0 Net increase in cash 6,940 Cash, January 1 Cash, December 31 6,940