Presented below are the 2021 income statement and comparative balance sheets for Santana Industries. SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) $ 15,650 4,800 Sales revenue Service revenue Total revenue $20,450 Operating expenses: Cost of goods sold Selling expense General and administrative expense Total operating expenses Operating income Interest expense 7,900 3,100 2,200 13,200 7,250 220 Income before income taxes 7,030 2,300 Income tax expense $ 4,730 Net income Dec. 31, Dec. 31, 2020 2021 Balance Sheet Information ($ in thousands) Assets: $ 9,000 3,900 5,400 220 $ 2,830 2,900 3,700 440 Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation 15,900 (5,800) 13,400 (5,200) $28,620 $18,070 Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due 12/31/2023) Common stock $ 1,800 $ 2,800 170 940 670 620 940 6,400 10,700 6,990 10,700 3,960 Retained earnings Total liabilities and shareholders' equity $28,620 $18,070 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,700 were declared and paid. 2. Equipment costing $5,400 was purchased with cash. 3. Equipment with a book value of $1,200 (cost of $2,900 less accumulated depreciation of $1,700) was sold for $1,200. 4. Depreciation of $2,300 is included in operating expenses. Required: Prepare Santana Industries' 2021 statement of cash flows, using the indirect method to present cash flows from operating activities. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2021 ($ in thousands) Cash flows from operating activities: Net income 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