Squirrel Tree Services reports the following amounts on December 31. Assets Cash Supplies Prepaid insurance Liabilities and Stockholders' Equity $ 9,700 Accounts payable $ 15,700 3,800 Salaries payable 5,500 40,000 5,500 Notes payable 92,000 40,000 Common stock Building Retained earnings 9,800 In addition, the company reported the following cash flows. Cash Inflows $42,000 Customers Borrow from the bank (note) Sale of investments Cash Outflows $ 100,000 Employee salaries 40,000 Supplies 38,000 Dividends 24,000 16,500 102,000 Purchase building Required: 1. Prepare a balance sheet. SQUIRREL TREE SERVICES Balance Sheet Assets Liabilities Total liabilities Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity Total assets 2. Prepare a statement of cash flows. (Cash outflows and decreases in cash should be indicated by a minus sign.) SQUIRREL TREE SERVICES Statement of Cash Flows Cash Flows from Operating Activities Net cash flows from operating activities Cash Flows from Investing Activities Net cash flows from investing activities Cash Flows from Financing Activities Net cash flows from financing activities Cash at the beginning of the year Cash at the end of the year