roblem 4-11 Statement of cash flows; indirect method [LO4-9]

Presented below are the 2013 income statement and comparative balance sheets for Santana Industries.

SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2013 ($ in thousands)
Sales revenue	$	15,250
Service revenue		4,400
Total revenue				$	19,650
Operating expenses:
Cost of goods sold		7,700
Selling		2,900
General and administrative		2,000
Total operating expenses					12,600
Operating income					7,050
Interest expense					250
Income before income taxes					6,800
Income tax expense					3,000
Net income				$	3,800

Balance Sheet Information ($ in thousands)
	Dec. 31, 2013				Dec. 31, 2012
Assets:
Cash	$	7,850			$	2,650
Accounts receivable		3,500				2,700
Inventory		5,000				3,500
Prepaid rent		200				400
Plant and equipment		15,500				13,000
Less: Accumulated depreciation		(5,600	)			(5,000	)
Total assets	$	26,450			$	17,250
Liabilities and Shareholders Equity:
Accounts payable	$	2,400			$	1,600
Interest payable		150				0
Unearned service revenue		900				650
Income taxes payable		600				900
Loan payable (due 12/31/2015)		6,000				0
Common stock		10,500				10,500
Retained earnings		5,900				3,600
Total liabilities and shareholders' equity	$	26,450			$	17,250

Additional information for the 2013 fiscal year ($ in thousands):
1.	Cash dividends of $1,500 were declared and paid.
2.	Equipment costing $5,000 was purchased with cash.
3.	Equipment with a book value of $1,000 (cost of $2,500 less accumulated depreciation of $1,500) was sold for $1,000.
4.	Depreciation of $2,100 is included in operating expenses.

Required:

Prepare Santana Industries' 2013 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.)

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