Reference no: EM13860314

Presented below are the 2016 income statement and comparative balance sheets for Santana Industries. Additional information for the 2016 fiscal year ($ in thousands): Cash dividends of $3,000 were declared and paid. Equipment costing $8,000 was purchased with cash. Equipment with a book value of $2,500 (cost of $5,500 less accumulated depreciation of $3,000) was sold for $2,500. Depreciation of $3,600 is included in operating expenses.

Required

1. Prepare Santana Industries' 2016 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.)

2. Assume that by December 31, 2016, the division had not yet been sold but was considered held for sale. The fair value of the division's assets on December 31 was $5,240,000. How would the presentation of discontinued operations be different from your answer to requirement 1? (Amounts to be deducted should be indicated with a minus sign.)