Whispering Company had the following information available at the end of 2017.

WHISPERINGCOMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31, 2017 AND 2016
		2017			2016
Cash		$10,090			$4,040
Accounts receivable		20,560			13,010
Short-term investments		21,990			29,860
Inventory		41,660			34,920
Prepaid rent		3,000			11,930
Prepaid insurance		2,130			89
Supplies		990			75
Land		126,120			174,150
Buildings		352,260			352,260
Accumulated depreciationbuildings		(104,500	)		(87,220	)
Equipment		522,600			399,420
Accumulated depreciationequipment		(130,370	)		(113,030	)
Patents		44,550			49,800
Total assets		$911,080			$869,304
Accounts payable		$21,830			$31,830
Income taxes payable		4,970			4,020
Salaries and wages payable		4,990			3,000
Short-term notes payable		9,950			9,950
Long-term notes payable		60,310			69,560
Bonds payable		403,050			403,050
Premium on bonds payable		19,990			22,814
Common stock		238,510			219,480
Paid-in capital in excess of parcommon stock		25,150			17,400
Retained earnings		122,330			88,200
Total liabilities and stockholders equity		$911,080			$869,304

WHISPERING COMPANY INCOME STATEMENT AND DIVIDEND INFORMATION FOR THE YEAR ENDED DECEMBER 31, 2017
Sales revenue					$1,153,150
Cost of goods sold					742,220
					410,930
Gross margin
Operating expenses
Selling expenses		$78,600
Administrative expenses		155,490
Depreciation/Amortization expense		39,870
Total operating expenses					273,960
Income from operations					136,970
Other revenues/expenses
Gain on sale of land		7,950
Gain on sale of short-term investment		4,040
Dividend revenue		2,400
Interest expense		(52,230	)		(37,840	)
Income before taxes					99,130
Income tax expense					39,360
Net income					59,770
Dividends to common stockholders					(25,640	)
To retained earnings					$34,130

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