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 Service revenue Total revenue Operating expenses: Cost of goods sold Selling expense ($ in thousands) General and administrative expense Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income $ 15,450 4,600 $20,050 7,800 3,000 2,100 12,900 7,150 210 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 Retained earnings Total liabilities and shareholders' equity Additional information for the 2021 fiscal year ($ in thousands): Dec. 31, 2021 Dec. 31, 2020 $ 8,900 3,700 5,200 210 $ 2,740 2,800 3,600 420 15,700 13,200 (5,700) $28,010 (5,100) $17,660 $ 2,600 $1,700 920 610 6,200 660 920 10,600 6,920 $28,010 10,600 3,780 $17,660 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 $2,200 is included in operating expenses. Required: Prepare Santana Industries' 2021 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 Cash flows from operating activities: Net income Adjustments for noncash effects: Depreciation expense ($ in thousands) $ 4,740 Changes in operating assets and liabilities: Decrease in prepaid rent Increase in accounts payable Increase in accounts receivable Increase in interest payable 2,200 210 900 (900) Increase in deferred revenue Decrease in income taxes payable Increase in inventory Net cash flows from operating activities Cash flows from investing activities: Sale of equipment Purchase of equipment Net cash flows from investing activities Cash flows from financing activities: Dividends paid to shareholders Issuance of notes payable Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 260 (310) (1,600) $ 5,660 0 0 5,660 $ 5,660