Presented below are the 2021 Income statement and comparative balance sheets for Santana Industries. $20,45 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $ 15,650 Service revenue 4, see Total revenue Operating expenses: Cost of goods sold 7,900 Selling expense 3,180 General and administrative expense 2,200 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 13,200 7,250 220 7,830 2,300 $ 4,730 Dec. 31, 2021 Dec. 31, 2020 $ 9,000 3,900 5,400 220 15,900 (5,800) $28,620 $ 2,830 2,900 3,700 440 13,400 (5,200) $ 18,070 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 $ 1,800 670 940 $ 2,800 170 940 620 6,400 10,700 6,990 $28,620 10,700 3,960 $ 18,070 SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Net income $ 3.780 Adjustments for noncash effects: Depreciation expense 2.300 Changes in operating assets and liabilities: Decrease in prepaid rent 220 Increase in accounts payable 1,000 Increase in interest payable 170 Increase in deferred revenue 270 Decrease in income taxes payable 320 Increase in accounts receivable 1.000 Increase in inventory 17,000 S 26,060 Net cash flows from operating activities Cash flows from investing activities: 0 Net cash flows from investing activities Cash flows from financing activities: 0 26,060 Net cash flows from financing activities Net increase in cash Cash, January 1 Cash, December 31 S 26,060