Required: Prepare Santana Industries' 2018 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 Income Statement For the Year Ended December 31, 2018 (S in thousands) 17,450 6,600 Sales revenue Service revenue $24,050 Total revenue Operating expenses Cost of goods sold Selling General and administrative 8,800 4,000 3,100 Total operating expenses Operating income Interest expense 15,900 8,150 360 7,790 4,100 Income before income taxes Income tax expense 3,690 Net income Dec. 31 2017 Dec. 31, 2018 Balance Sheet Information ($ in thousands) Assets: 8,950 5,700 7,200 310 3,640 3,800 4,600 620 Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation 17,700 (6,700) $33,160 15,200 (6,100) $ 21,760 Total assets Liabilities and Shareholders' Equity Accounts payable Interest payable Deferred service revenue $ 2,700 $ 4,600 260 0 760 1,120 710 Income taxes payable Loan payable (due 12/31/2020) Common stock Retained earnings 1,120 0 8,200 11,600 6,670 $ 33,160 11,600 5,580 $ 21,760 Total liabilities and shareholders' equity Additional information for the 2018 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