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)
Sales revenue	$ 17,450
Service revenue	6,600
Total revenue		$ 24,050
Operating expenses:
Cost of goods sold	8,800
Selling expense	4,000
General and administrative expense	3,100
Total operating expenses		15,900
Operating income		8,150
Interest expense		310
Income before income taxes		7,840
Income tax expense		3,200
Net income		$ 4,640

Balance Sheet Information ($ in thousands)	December 31, 2021	December 31, 2021
Assets:
Cash	$ 9,900	$ 3,640
Accounts receivable	5,700	3,800
Inventory	7,200	4,600
Prepaid rent	310	620
Equipment	17,700	15,200
Less: Accumulated depreciation	(6,700)	(6,100)
Total assets	$ 34,110	$ 21,760
Liabilities and Shareholders Equity:
Accounts payable	$ 4,600	$ 2,700
Interest payable	260	0
Deferred revenue	1,120	760
Income taxes payable	710	1,120
Notes payable (due 12/31/2026)	8,200	0
Common stock	11,600	11,600
Retained earnings	7,620	5,580
Total liabilities and shareholders' equity	$ 34,110	$ 21,760

Additional information for the 2021 fiscal year ($ in thousands):

1. Cash dividends of $2,600 were declared and paid.
2. Equipment costing $7,200 was purchased with cash.
3. Equipment with a book value of $2,100 (cost of $4,700 less accumulated depreciation of $2,600) was sold for $2,100.
4. Depreciation of $3,200 is included in operating expenses.