Presented below are the 2021 income statement and comparative
balance sheets for Santana Industries.
SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) |
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Sales revenue | $ | 16,850 | |||
Service revenue | 6,000 | ||||
Total revenue | $ | 22,850 | |||
Operating expenses: | |||||
Cost of goods sold | 8,500 | ||||
Selling expense | 3,700 | ||||
General and administrative expense | 2,800 | ||||
Total operating expenses | 15,000 | ||||
Operating income | 7,850 | ||||
Interest expense | 280 | ||||
Income before income taxes | 7,570 | ||||
Income tax expense | 2,900 | ||||
Net income | $ | 4,670 | |||
Balance Sheet Information ($ in thousands) | Dec. 31, 2021 |
Dec. 31, 2020 |
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Assets: | |||||||
Cash | $ | 9,600 | $ | 3,370 | |||
Accounts receivable | 5,100 | 3,500 | |||||
Inventory | 6,600 | 4,300 | |||||
Prepaid rent | 280 | 560 | |||||
Equipment | 17,100 | 14,600 | |||||
Less: Accumulated depreciation | (6,400 | ) | (5,800 | ) | |||
Total assets | $ | 32,280 | $ | 20,530 | |||
Liabilities and Shareholders’ Equity: | |||||||
Accounts payable | $ | 4,000 | $ | 2,400 | |||
Interest payable | 230 | 0 | |||||
Deferred revenue | 1,060 | 730 | |||||
Income taxes payable | 680 | 1,060 | |||||
Notes payable (due 12/31/2023) | 7,600 | 0 | |||||
Common stock | 11,300 | 11,300 | |||||
Retained earnings | 7,410 | 5,040 | |||||
Total liabilities and shareholders' equity | $ | 32,280 | $ | 20,530 | |||
Additional information for the 2021 fiscal year ($ in
thousands):
Required:
Prepare Santana Industries' 2021 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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