Sandhill Company had the following information available at the end of 2020.

SANDHILLCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2020 AND 2019
		2020			2019
Cash		$10,100			$4,020
Accounts receivable		20,580			12,830
Short-term investments		22,020			29,750
Inventory		42,390			34,710
Prepaid rent		3,020			12,030
Prepaid insurance		2,100			89
Supplies		1,000			74
Land		125,640			176,140
Buildings		347,130			347,130
Accumulated depreciation—buildings		(104,250	)		(87,940	)
Equipment		530,080			398,810
Accumulated depreciation—equipment		(130,600	)		(111,650	)
Patents		44,570			49,920
Total assets		$913,780			$865,913
Accounts payable		$22,110			$32,240
Income taxes payable		5,010			4,010
Salaries and wages payable		5,000			2,990
Short-term notes payable		10,010			10,010
Long-term notes payable		59,650			70,450
Bonds payable		402,050			402,050
Premium on bonds payable		19,870			21,533
Common stock		241,660			220,690
Paid-in capital in excess of par—common stock		24,940			17,540
Retained earnings		123,480			84,400
Total liabilities and stockholders’ equity		$913,780			$865,913

SANDHILL COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue					$1,161,810
Cost of goods sold					753,770
					408,040
Gross margin
Operating expenses
Selling expenses		$79,370
Administrative expenses		150,640
Depreciation/Amortization expense		40,610
Total operating expenses					270,620
Income from operations					137,420
Other revenues/expenses
Gain on sale of land		7,980
Gain on sale of short-term investment		4,040
Dividend revenue		2,410
Interest expense		(51,610	)		(37,180	)
Income before taxes					100,240
Income tax expense					39,060
Net income					61,180
Dividends to common stockholders					(22,100	)
To retained earnings					$39,080

Prepare a statement of cash flows for Sandhill Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are debt securities, classified as available-for-sale.