Intermediate Accounting: E4-20 Presented below are the 2016 income statement (Santana Industries)

Intermediate Accounting
E4–20 Statement of cash flows; indirect method
Presented below are the 2016 income statement and comparative balance sheets for Santana Industries.
SANTANA INDUSTRIES
Income Statement
For the Year Ended December 31, 2016
($ in thousands)
  Sales revenue 14,450
  Service revenue 3,600
      Total revenue 18,050
  Operating expenses:
    Cost of goods sold 7,300
    Selling 2,500
    General and administrative 1,600
      Total operating expenses 11,400
  Operating income 6,650
  Interest expense 210
  Income before income taxes 6,440
  Income tax expense 2,600
  Net income $3,840

  Balance Sheet Information ($ in thousands) Dec. 31, 2016 Dec. 31, 2015
  Assets:
  Cash 7,450 2,290
  Accounts receivable 2,700 2,300
  Inventory 4,200 3,100
  Prepaid rent 160 320
  Plant and equipment 14,700 12,200
    Less: Accumulated depreciation (5,200) (4,600)
      Total assets $24,010 $15,610

  Liabilities and Shareholders’ Equity:
  Accounts payable 1,600 1,200
  Interest payable 110 -
  Deferred service revenue 820 610
  Income taxes payable 560 820
  Loan payable (due 12/31/2015) 5,200 -
  Common stock 10,100 10,100
  Retained earnings 5,620 2,880
        Total liabilities and shareholders' equity $24,010 $15,610

Additional information for the 2016 fiscal year ($ in thousands):
1. Cash dividends of $1,100 were declared and paid.
2. Equipment costing $4,200 was purchased with cash.
3. Equipment with a book value of $600 (cost of $1,700 less accumulated depreciation of $1,100) was sold for $600.
4. Depreciation of $1,700 is included in operating expenses.

Required:
Prepare Santana Industries' 2016 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.)
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