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

Additional information for the 2013 fiscal year ($ in thousands):

1. Cash dividends of $1,000 were declared and paid.

2. Equipment costing $4,000 was purchased with cash.

3. Equipment with a book value of $500 (cost of $1,500 less accumulated depreciation of $1,000) was sold for $500.

4. Depreciation of $1,600 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.

SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2013 (S in thousands) Sales revenue $14,250 3,400 Service revenue Total revenue $17,650 Operating expenses: Cost of goods sold Selling General and administrative 7,200 2,400 1,500 Total operating expenses 11,100 6,550 Operating income Interest expense Income before income taxes 200 6,350 2,500 Income tax expense $ 3,850 Net income Dec. 31, 2012 Balance Sheet Information ($ in thousands) Dec. 31, 2013 Assets: Cash Accounts receivable $ 7,350 2,500 4,000 $ 2,200 2,200 3,000 Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation 150 14,500 (5,100) 300 12,000 (4,500) $23,400 Total assets $15,200 Liabilities and Shareholders' Equity: Accounts payable Interest payable Unearned service revenue $ 1,400 100 $ 1,100 800 600 Income taxes payable Loan payable (due 12/31/2012) Common stock Retained earnings 550 800 5,000 10,000 5,550 10,000 2,700 Total liabilities and shareholders' equity $23,400 $15,200