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. $25,650 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2018 ($ in thousands) Sales revenue $ 18, 250 Service revenue 7,400 Total revenue Operating expenses: Cost of goods sold 9,200 Selling 4,400 General and administrative 3,500 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 17,100 8,550 400 8,150 4,500 $ 3,650 Dec. 31, Dec. 31, 2018 2017 $ 9,350 6,500 8,000 350 18,500 (7,100). $35,600 $ 4,000 4,200 5,000 700 16,000 (6,500) $23,400 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Plant and equipment Less: Accumulated depreciation Total assets Liabilities and shareholders' Equity: Accounts payable Interest payable Deferred service revenue Income taxes payable Loan payable (due 12/31/2020) Common stock Retained earnings Total liabilities and shareholders' equity $ 3,100 $ 5,400 300 1,200 750 9,000 12,000 6,950 $35,600 800 1,200 0 12,000 6,300 $23,400 Additional information for the 2018 fiscal year ($ in thousands): 1. Cash dividends of $3,000 were declared and paid. 2. Equipment costing $8,000 was purchased with cash. 3. Equipment with a book value of $2,500 (cost of $5,500 less accumulated depreciation of $3,000) was sold for $2,500. 4. Depreciation of $3,600 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.)