Squirrel Tree Services reports the following amounts on December 31, 2021.

Assets				Liabilities and Stockholders Equity
Cash	$	8,900		Accounts payable	$	13,300
Supplies		3,000		Salaries payable		4,700
Prepaid insurance		4,700		Notes payable		32,000
Building		84,000		Common stock		40,000
				Retained earnings		10,600

In addition, the company reported the following cash flows.

Cash Inflows				Cash Outflows
Customers	$	84,000		Employee salaries	$	34,000
Borrow from the bank (note)		32,000		Supplies		16,000
Sale of investments		28,000		Dividends		12,500
				Purchase building		86,000

Required:

1. Prepare a balance sheet.
2. Prepare a statement of cash flows.