Cleveland Company had the following information available at the end of 2008.

Instructions
Prepare a statement of cash flows for Cleveland Company using the direct method accompanied by a reconciliation schedule. Assume the short-term investments are available-for-salesecurities.

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Cleveland Company Comparative Balance Sheets As of December 31, 2008 and 2007 Inventory Short-term notes payable Paid-in capital in excess of par Total liabilities and stockholders' equity Income Statement For the Year Ended December 31, 2008 $1,160,000 156,700 operating expenses 135,600 Gain on sale of short-term investment