Riverbed Company had the following information available at the end of 2017. RIVERBEDCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $10,090 $4,010 Accounts receivable 12,860 20,500 Short-term investments 22,070 29,870 41,770 Inventory 35,190 Prepaid rent 3,000 11,930 Prepaid insurance 2,080 89 Supplies 1,000 75 Land 174,660 125,380 Buildings 347,010 347,010 Accumulated depreciation-buildings (105,780) (87,050) 402,250 Equipment 524,780 Accumulated depreciation-equipment (130,400) (111,620) Patents 45,280 49,920 $906,780 $869,194 Total assets Accounts payable $21,910 $31,990 Income taxes payable 5,020 4,010 Salaries and wages payable 4,970 2,980 Short-term notes payable 9,980 9,980 Long-term notes payable Bonds payable 69,690 60,350 398,970 398,970 Premium on bonds payable 24,034 16,020 220,910 Common stock 241,860 Paid-in capital in excess of par-common stock 25,190 17,630 Retained earnings 89,000 122,510 $906,780 $869,194 Total liabilities and stockholders' equity RIVERBED COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $1,168,880 Cost of goods sold 746,350 422,530 Gross margin Operating expenses Selling expenses $78,940 Administrative expenses 157,380 Depreciation/Amortization expense 42,150 Total operating expenses 278,470 Income from operations 144,060 Other revenues/expenses Gain on sale of land 7,940 Gain on sale of short-term investment 4,030 Dividend revenue 2,380 Interest expense (52,230) (37,880) Income before taxes 106,180 Income tax expense 39,440 Net income 66,740 Dividends to common stockholders (33,230) To retained earnings $33,510 To retained earnings $33,510 Prepare a statement of cash flows for Riverbed Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) RIVERBED COMPANY Statement of Cash Flows (Direct Method) Cash receipts: Cash payments: Pr $ (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) Reconciliation Schedule Reconciliation of Net Income to $ Adjustments to reconcile net income to $ $