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Presented below are the 2021 Income statement and comparative balance sheets for Santana Industries. $20,050 SANTANA INDUSTRIES Income Statement For the Year Ended December 31,

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Presented below are the 2021 Income statement and comparative balance sheets for Santana Industries. $20,050 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 15,450 Service revenue 4,600 Total revenue Operating expenses : Cost of goods sold 7,800 Selling expense 3,000 General and administrative expense 2,100 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 12,900 7,150 210 6,940 2,200 $ 4,740 Dec. 31, Dec. 31, 2021 2020 $ 8,900 3,700 5,200 210 15,700 (5,700) $28,010 Balance Sheet Information ($ 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 $ 2,740 2,800 3,600 420 13,200 (5,100) $17,660 $ 1,700 0 660 920 $ 2,600 160 920 610 6,200 10,600 6,920 $28,010 10,600 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: Adjustments for noncash effects: Changes in operating assets and liabilities: $ 0 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 0 Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 $ 0

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