Presented below are the 2021 income statement and comparative balance sheets for Santana Industries. $23,650 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 is in thousanda) Sales revenue $ 17,250 Service revenue 6,400 Total revenue Operating expenses Cort of goods sold 8,700 Selling expense 3,900 General and administrative expense 3,000 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 15,600 8,050 300 7,750 3,100 $ 4,650 Dec. 31, Dec. 31, 2021 2020 $ 9,800 5,500 7,000 300 17,500 (6,600) $33,500 $ 3,550 3,700 4,500 600 15,000 16,000) $21,350 Balance Sheet Information (s 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 $ 4,400 250 1,100 700 8,000 11,500 7,550 $33,500 $ 2,600 0 750 1,100 0 11,500 5,400 $21,350 Additional Information for the 2021 fiscal year ($ 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. 15. In thousande) Cash flows from operating activities: Net income Adjustments for noncash effects: $ 1,596 3,100 Changes in operating assets and liabilities: (1,800) Increase in accounts payable Decrease in prepaid rent Decrease in income taxes payable $ 2,896 Net cash flows from operating activities Cash flows from investing activities: Purchase of equipment 2,000 (7.000) (5,000) Net cash flows from investing activities Cash flows from financing activities: Dividends paid to shareholders 8,000 (2,500) Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 5.500 3,396 3,550 6,946 $ $