Question

Presented below are the 2021 income statement and comparative balance sheet me statement and comparative balance sheets for Santana Industries. P4-11 Statement of cash flows; indirect method • L04-8 $ 17,650 SANTANA INDUSTRIES Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales revenue $14,250 Service revenue 3,400 Total revenue Operating expenses: Cost of goods sold 7,200 Selling expense 2,400 General and administrative expense 1,500 Total operating expenses Operating income Interest expense Income before income taxes Income tax expense Net income 11,100 6,550 150 6,400 1,600 $ 4,800 Dec. 31, 2021 Dec. 31, 2020 $ 8,300 2,500 4,000 150 14,500 (5,100) $24,350 $ 2,200 2,200 3,000 300 12,000 (4,500) $15,200 Balance Sheet Information ($ in thousands) Assets: Cash Accounts receivable Inventory Prepaid rent Equipment Less: Accumulated depreciation Total assets Liabilities and shareholders' equity: Accounts payable Interest payable Deferred revenue Income taxes payable Notes payable (due 12/31/2023) Common stock Retained earnings Total liabilities and shareholders' equity $ 1,100 600 800 $ 1,400 100 800 550 5,000 10,000 6,500 $ 24,350 10,000 2,700 $15,200

Answer 1

SANTANA IVDUSTRIES 8latement of Cersh Flow Tor the year endend Decem 30l: , 20 fin Hhousands) Cash Flouw From opemting activiljes : Net Antome beļore tawes Adjus Iment do econeile net income to net Cosh po vided. by o/pexaling aclivitie: Add: Inlerest eapensa Add: Depreciation $ 6400 $ 150 $ 1600 $1750 $8150 Add: Decoegre in Cyrnent Aseks : $ 150 Prepaid Rent 4ncrease in cunent Liabilithes. Accounts payable Deffered Revenye Add: $ 300 $ 650 $ 8800 200 Increase in eurrent Axeb : Accounts Receivables Anventoy Cosh povidad by operation Loss: Ineomo terem paid $ (800+ 1600 -5so) Les: $ ३०० $ loo0 (B 1300) $ ऽठ० 1850) 5650 Net Cath From oparating acivites. (6)

(३in !howgods) CAsh t-lows Fioom 4nvesting Aclivities." Sale of fquipment punchau of fquip ment Net Cash usaed in Arwesting achiviliesce) $ 500 ($ 4000) ($ 356 ($350) Cash Flows Fom Financing Activities, Cash Foom Notes Cosh Dividendpaid. Interst paid. ($ 1000) (* so) $3950 $(0+i50-100) Net Carsh Generated from Fingncing getivities: (C) 3ণठ Net increese in eash (A+B+C) $ 6100 $5650+(-3500)+3910) 2200 Add: Cash at the boginning a the years 8300 Cash at the endof the year.