Reference no: EM13330203

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 $ 17,850
Service revenue 7,000

Total revenue $ 24,850
Operating expenses:
Cost of goods sold 9,000
Selling 4,200
General and administrative 3,300


Total operating expenses 16,500
Operating income 8,350
Interest expense 380

Income before income taxes 7,970
Income tax expense 4,300

Net income $ 3,670

Balance Sheet Information ($ in thousands)
Dec.
31, 2013 Dec.
31, 2012
Assets:
Cash $ 9,150 $ 3,820
Accounts receivable 6,100 4,000
Inventory 7,600 4,800
Prepaid rent 330 660
Plant and equipment 18,100 15,600
Less: Accumulated depreciation (6,900 ) (6,300 )
Total assets $ 34,380 $ 22,580


Liabilities and Shareholders' Equity:
Accounts payable $ 5,000 $ 2,900
Interest payable 280 0
Unearned service revenue 1,160 780
Income taxes payable 730 1,160
Loan payable (due 12/31/2015) 8,600 0
Common stock 11,800 11,800
Retained earnings 6,810 5,940


Total liabilities and shareholders' equity $ 34,380 $ 22,580
Additional information for the 2013 fiscal year ($ in thousands):
1. Cash dividends of $2,800 were declared and paid.
2. Equipment costing $7,600 was purchased with cash.
3. Equipment with a book value of $2,300 (cost of $5,100 less accumulated depreciation of $2,800) was sold for $2,300.
4. Depreciation of $3,400 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.)