Presented below are the 2021 income statement and comparative balance sheets for Santana Industries. $18,050 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 14,450 Service revenue 3,600 Total revenue Operating expenses : Coat of goods sold 7,300 Selling expense 2,500 General and administrative expense 1,600 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 11,400 6,650 160 6,490 1,700 $ 4,790 Dec. 31, 2021 Dec. 31, 2020 $ 8,400 2,700 4,200 160 14,700 (5,200) $24,960 $ 2,290 2,300 3,10M 320 12,200 (4,600) $15, 610 Balance sheet Information ($ 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' muitv $ 1,600 110 820 560 5,200 10,100 6,570 $24,960 $ 1,200 0 610 820 0 10,100 2,880 $15,610 Dec. 31. 2021 Doc. 31 2020 $ 8,400 2,700 4,200 160 14,700 (5,200) $24.960 $ 2,290 2,300 3,100 320 12,200 (4,600) $15,610 Balance Sheet Information ( in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Liabilities and shareholders' Equity Accounts payable Intereat payable Deferred revenue Income taxes payable Notes payable (due 12/31/2023) Common stock Retained earnings Total liabilities and shareholders' equity $ 1,600 110 820 560 5,200 10,100 6,570 $24.960 $ 1,200 0 610 820 0 10, 100 2,880 $15, 610 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,100 were declared and paid. 2. Equipment costing $4,200 was purchased with cash 3. Equipment with a book value of $600 (cost of $1,700 less accumulated depreciation of $1,100) was sold for $600. 4. Depreciation of $1,700 is included in operating expenses. Required: Prepare Santana Industries' 2021 statement of cash flows, using the indirect method to present cash flows from operating (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities ($ in thousands) Cash flows from operating activities: Adjustments for noncash effects: Changes in operating assets and liabilities: Net cash flows from operating activities Cash flows from investing activities: Net cash flows from investing activities Cash flows from financing activities: Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31
