Presented below are the 2024 income statement and comparative balance sheets for Santana Industries. SANTANA INDUSTRIES...

Transcribed Image Text:

Presented below are the 2024 income statement and comparative balance sheets for Santana Industries. SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2024 ($ in thousands) Sales revenue Service revenue Total revenue Operating expenses: Cost of goods sold Selling expense General and administrative expense Total operating expenses Operating income Interest expense Income before income taxes Income tax expense $ 15,050 4,200 $ 19,250 7,600 2,800 1,900 12,300 6,950 190 6,760 2,000 Net income Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable $ 4,760 December 31, December 31, 2024 $ 8,700 3,300 4,800 2023 $ 2,560 2,600 3,400 Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due 12/31/2026) Common stock Retained earnings Total liabilities and shareholders' equity Additional information for the 2024 fiscal year ($ in thousands): 1. Cash dividends of $1,400 were declared and paid. 2. Equipment costing $4,800 was purchased with cash. 190 380 15,300 (5,500) 12,800 (4,900) $ 26,790 $ 16,840 $ 2,200 $ 1,500 140 0 880 640 590 880 5,800 0 10,400 6,780 10,400 3,420 $ 26,790 $ 16,840 3. Equipment with a book value of $900 (cost of $2,300 less accumulated depreciation of $1,400) was sold for $900. 4. Depreciation of $2,000 is included in operating expenses. Required: Prepare Santana Industries' 2024 statement of cash flows, using the indirect method to present cash flows from operating activities. Note: Amounts to be deducted should be indicated with a minus sian. Enter your answers in thousands. Presented below are the 2024 income statement and comparative balance sheets for Santana Industries. SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2024 ($ in thousands) Sales revenue Service revenue Total revenue Operating expenses: Cost of goods sold Selling expense General and administrative expense Total operating expenses Operating income Interest expense Income before income taxes Income tax expense $ 15,050 4,200 $ 19,250 7,600 2,800 1,900 12,300 6,950 190 6,760 2,000 Net income Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable $ 4,760 December 31, December 31, 2024 $ 8,700 3,300 4,800 2023 $ 2,560 2,600 3,400 Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due 12/31/2026) Common stock Retained earnings Total liabilities and shareholders' equity Additional information for the 2024 fiscal year ($ in thousands): 1. Cash dividends of $1,400 were declared and paid. 2. Equipment costing $4,800 was purchased with cash. 190 380 15,300 (5,500) 12,800 (4,900) $ 26,790 $ 16,840 $ 2,200 $ 1,500 140 0 880 640 590 880 5,800 0 10,400 6,780 10,400 3,420 $ 26,790 $ 16,840 3. Equipment with a book value of $900 (cost of $2,300 less accumulated depreciation of $1,400) was sold for $900. 4. Depreciation of $2,000 is included in operating expenses. Required: Prepare Santana Industries' 2024 statement of cash flows, using the indirect method to present cash flows from operating activities. Note: Amounts to be deducted should be indicated with a minus sian. Enter your answers in thousands.

Answer rating: 100% (QA)

To prepare the statement of cash flows for Santana Industries using the indirect method for the operating activities we start by adjusting the net income with changes in noncash accounts and changes i... View the full answer