Squirrel Tree Services reports the following amounts on December 31.

In addition, the company reported the following cash flows.

Required:
1. Prepare a balance sheet.
2. Prepare a statement of cashflows.

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Assets Cash Supplies Prepaid insurance Building S8,700 1.700 3.200 75,000 Liabilities and Stockholders' Equity S9.600 4.500 22,000 41.000 10,800 Accounts payable Salaries payable Notes payable Common stock Retained earnings Cash Inflows Customers Borrow from the bank (note) 22,000 Sale of investments Cash Outflows S58,000 Employee salaries S20,000 6,000 7,500 Purchase building 63,000 Supplies 11,000 Dividends