2.

6 points

Presented below are the 2011 income statement and comparative balance sheets for Santana Industries.

SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2011 ($ in thousands)
Sales revenue	$	15,400
Service revenue	3,600
Total revenue	$	19,000
Operating expenses:
Cost of goods sold	7,700
Selling	2,700
General and administrative	1,800
Total operating expenses	12,200
Operating income	15,800
Interest expense	100
Income before income taxes	6,700
Income tax expense	2,680
Net income	$	4,020

Balance Sheet Information ($ in thousands)	Dec. 31, 2011	Dec. 31, 2010
Assets:
Cash	$	6,500	$	2,400
Accounts receivable	3,100	2,800
Inventory	4,100	3,000
Prepaid rent	250	500
Plant and equipment	16,100	14,000
Less: Accumulated depreciation	(5,850	)	(5,250	)
Total assets	$	24,200	$	17,450
Liabilities and shareholders' equity:
Accounts payable	$	1,800	$	1,100
Interest payable	80	0
Unearned service revenue	900	700
Income taxes payable	500	750
Loan payable (due 12/31/2014)	4,000	0
Common stock	11,000	11,000
Retained earnings	5,920	3,900
Total liabilities and shareholders' equity	$	24,200	$	17,450

Additional information for the 2011 fiscal year ($ in thousands):
1.	Cash dividends of $2,000 were declared and paid.
2.	Equipment costing $4,000 was purchased with cash.
3.	Equipment with a book value of $1,000 (cost of $1,900 less accumulated depreciation of $900) was sold for $1,000.
4.	Depreciation of $1,500 is included in operating expenses.

Required:
Prepare Santana Industries' 2011 statement of cash flows, using the indirect method to present cash flows from operating activities. (Enter your answers in thousands. Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.)

SANTANA INDUSTRIES Statement of Cash Flows For the Year Ended December 31, 2011 ($ in thousands)
Cash flows from operating activities:
$
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities	$
Cash flows from investing activities:
Net cash flows from investing activities
Cash flows from financing activities:
Net cash flows from financing activities
Cash, January 1
Cash, December 31	$