Presented below are the 2021 income statement and comparative balance sheets for Santana Industries. $22,850 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 16,850 Service revenue 6,000 Total revenue Operating expenses Cost of goods sold 8,500 Selling expense 3,700 General and administrative expense 2,800 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 15,000 7,850 280 7,570 2,900 $ 4,670 Dec. 31, 2021 Dec. 31, 2020 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 $ 9,600 5,100 6,600 280 17,100 (6,400) $32, 280 $ 3,370 3,500 4,300 560 14,600 (5,800) $20,530 $ 4,000 230 1,060 $ 2,400 0 730 Dec. 31, Dec. 31, 2020 2021 $ 9,600 5, 100 6,600 280 17,100 (6.400) $32,280 $ 3,370 3,500 4,300 560 14,600 (5,800) $20,530 Balance Sheet Information is 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 $ 4,000 230 1,060 680 7,600 11,300 7,410 $32,280 $ 2,400 0 730 1,060 0 11,300 5,040 $20,530 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $2,300 were declared and paid. 2. Equipment costing $6,600 was purchased with cash. 3. Equipment with a book value of $1,800 (cost of $4,100 less accumulated depreciation of $2,300) was sold for $1,800. 4. Depreciation of $2,900 is included in operating expenses. Required: Prepare Santana Industries' 2021 statement of cash flows, using the Indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) Required: Prepare Santana Industries' 2021 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 ($ 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 operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 o Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 $
