Problem 4-11 Statement of cash flows; indirect method [LO4-8] Presented below are the 2018 income statement and comparative balance sheets for Santana Industries SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue Service revenue $15,450 4,600 Total revenue $20,050 Operating expenses: Cost of goods sold Selling General and administrative 7,800 3,000 2,100 12,900 7,150 260 6,890 3,100 $3,790 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income Dec. 31, Dec. 31, 2018 2017 Balance Sheet Information ( in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment $ 7,950 2,740 2,800 3,600 420 13,200 3,700 5,200 210 15,700 (5,700) Less: Accumulated depreciation (5,100) Total assets $27,060 $17,660 Liabilities and Shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2020) Common stock Retained earnings $ 2,600 $1,700 160 920 610 6,200 10,600 660 920 10,600 5.9703,780 Total liabilities and shareholders' equity $27,060 $17,660 Additional information for the 2018 fiscal year ($ in thousands) 1. Cash dividends of $1,600 were declared and paid 2. Equipment costing $5,200 was purchased with cash 3. Equipment with a book value of $1,100 (cost of $2,700 less accumulated depreciation of $1,600) was sold for $1,100 4. Depreciation of $2,200 is included in operating expenses Required Prepare Santana Industries' 2018 statement of cash flows, using the indirect method to present cash flows from operating activities Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2018 ($ in thousands)