Presented below are the 2021 income statement and comparative balance sheets for Santana Industries.SANTANA INDUSTRIESIncome StatementFor the Year Ended December 31, 2021($ in thousands)$ 14,8504,000Sales revenueService revenueTotal revenue$18,850Operating expenses:Cost of goods soldSelling expenseGeneral and administrative expenseTotal operating expenses7,5002,7001,80012,000Operating incomeInterest expense6,850180Income before income taxes6,6701,900Income tax expenseNet income$ 4,770Dec. 31,Dec. 31,Balance Sheet Information ($ in thousands)20212020Assets:$ 8,6003,1004,600$ 2,4702,500CashAccounts receivableInventory3,300Prepaid rentEquipmentLess: Accumulated depreciation18036015,100(5,400)$ 26,18012,600(4,800)$16,430Total assetsLiabilities and Shareholders' Equity: Liabilities and Shareholders' Equity:Accounts payableInterest payableDeferred revenue$ 2,000$ 1,400130860630580Income taxes payableNotes payable (due 12/31/2023)8605,60010,3006,710Common stock10,3003,240$ 16,430Retained earningsTotal liabilities and shareholders' equity$ 26,180Additional information for the 2021 fiscal year ($ in thousands):1. Cash dividends of $1,300 were declared and paid.2. Equipment costing $4,600 was purchased with cash.3. Equipment with a book value of $800 (cost of $2,100 less accumulated depreciation of $1,300) was sold for $800.4. Depreciation of $1,900 is included in operating expenses.Required:Prepare Santana Industries' 2021 statement of cash flows, using the indirect method to present cash flows from operating activities.(Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.)SANTANA INDUSTRIESStatement of Cash FlowsFor the Year Ended December 31, 2021($ in thousands)

Cash flow statement provided information about the cash inflows and cash outflows of the company.…

Liabilities and Shareholders' Equity: Accounts payable Interest payable $ 2,000 $ 1,400 130 Deferred revenue 860 630 Income taxes payable Notes payable (due 12/31/2023) 580 860 5,600 10,300 6,710 $ 26,180 Common stock 10,300 3,240 Retained earnings Total liabilities and shareholders' equity $16,430 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,300 were declared and paid. 2. Equipment costing $4,600 was purchased with cash. 3. Equipment with a book value of $800 (cost of $2,100 less accumulated depreciation of $1,300) was sold for $800. 4. Depreciation of $1,900 is included in operating expenses. 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.)

Liabilities and Shareholders' Equity: Accounts payable Interest payable $ 2,000 $ 1,400 130 Deferred revenue 860 630 Income taxes payable Notes payable (due 12/31/2023) 580 860 5,600 10,300 6,710 $ 26,180 Common stock 10,300 3,240 Retained earnings Total liabilities and shareholders' equity $16,430 Additional information for the 2021 fiscal year ($ in thousands): 1. Cash dividends of $1,300 were declared and paid. 2. Equipment costing $4,600 was purchased with cash. 3. Equipment with a book value of $800 (cost of $2,100 less accumulated depreciation of $1,300) was sold for $800. 4. Depreciation of $1,900 is included in operating expenses. 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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