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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 $ $15,850$

Service revenue $5,000$

Total revenue $ $20,850$

Operating expenses:

Cost of goods sold $8,000$

Selling expense $3,200$

General and administrative expense $2,300$

Total operating expenses $13,500$

Operating income $7,350$

Interest expense $230$

Income before income taxes $7,120$

Income tax expense $2,400$

Net income $ $4,720$

Balance Sheet Information $($$ in thousands$)$ December $31,2024$ December $31,2023$

Assets:

Cash $ $9,100$ $ $2,920$

Accounts receivable $4,1003,000$

Inventory $5,6003,800$

Prepaid rent $230460$

Equipment $16,10013,600$

Less: Accumulated depreciation $(5,900)(5,300)$

Total assets $ $29,230$ $ $18,480$

Liabilities and Shareholders$$ Equity:

Accounts payable $ $3,000$ $ $1,900$

Interest payable $1800$

Deferred revenue $960680$

Income taxes payable $630960$

Notes payable $($due $12/31/2026)6,6000$

Common stock $10,80010,800$

Retained earnings $7,0604,140$

Total liabilities and shareholders' equity $ $29,230$ $ $18,480$

Additional information for the $2024$ fiscal year $($$ in thousands$)$:

Cash dividends of $$1,800$ were declared and paid.

Equipment costing $$5,600$ was purchased with cash.

Equipment with a book value of $$1,300($cost of $$3,100$ less accumulated depreciation of $$1,800)$ was sold for $$1,300.$

Depreciation of $$2,400$ 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 sign. Enter your answers in thousands.

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