Skysong Company had the following information available at the end of 2017. SKYSONGCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016 2017 2016 Cash $10,040 $4,030 Accounts receivable 12,910 20,560 Short-term investments 22,220 29,960 Inventory 42,400 35,320 Prepaid rent 2,990 12,050 2,110 Prepaid insurance 89 Supplies 990 76 Land 123,790 174,420 Buildings 349,320 349,320 Accumulated depreciation-buildings (104,330 ) (87,530 ) 396,430 Equipment 522,390 Accumulated depreciation-equipment (129,860 ) (112,170 ) Patents 44,810 49,940 $907,430 $864,845 Total assets Accounts payable $22,090 $32,050 Income taxes payable 5,000 4,040 Salaries and wages payable 4,990 2,980 Short-term notes payable 10,020 10,020 Long-term notes payable 60,200 70,310 Bonds payable 401,710 401,710 Premium on bonds payable 16,020 18,135 Common stock 239,400 219,310 Paid-in capital in excess of par-common stock 24,910 17,400 Retained earnings 123,090 88,890 Total liabilities and stockholders' equity $907,430 $864,845 SKYSONG COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $1,157,590 Cost of goods sold 742,010 415,580 Gross margin Operating expenses Selling expenses $79,130 Administrative expenses 158,050 Depreciation/Amortization expense 39,620 Total operating expenses 276,800 Income from operations 138,780 Other revenues/expenses Gain on sale of land 7,920 3,980 Gain on sale of short-term investment Dividend revenue 2,400 Interest expense (51,290 ) (36,990 ) Income before taxes 101,790 Income tax expense 39,230 Net income 62,560 (28,360 ) Dividends to common stockholders To retained earnings $34,200 Prepare a statement of cash flows for Skysong 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).) SKYSONG COMPANY Statement of Cash Flows (Direct Method) Cash receipts: $4 Cash payments: $. (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 $