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.

Liabilities and Stockholders' Equity Assets Cash Supplies Prepaid insurance3,500 Building $7,700 Accounts payable 1,800 Salaries payable $9,700 3,500 20,000 40,000 11,800 Notes payable 72,000 Common stock Retained earnings Cash Inflows Customers Borrow from the bank (note Sale of investments Cash Outflows $60,000 Employee salaries $22,000 4,000 6,500 Purchase building 62,000 20,000 Supplies 10,000 Dividends