Squirrel Tree Services reports the following amounts on December 31. Assets Liabilities and Stockholders' Equity Cash $ 8,700 Accounts payable $ 12,700 Supplies 2,800 Salaries payable 4,500 Prepaid insurance 4,500 Notes payable 30,000 82,000 Building Common stock 40,000 Retained earnings 10.800 In addition, the company reported the following cash flows. Cash Inflows Cash Outflows Customers $80,000 Employee salaries Borrow from the bank (note) 30,000 Supplies Sale of investments 25,000 Dividends Purchase building $32,000 14,000 11,500 82,000 Required: 1. Prepare a balance sheet. SQUIRREL TREE SERVICES Balance Sheet Assets Liabilities $ $ Cash Supplies Prepaid insurance Building 8.700 Accounts payable 2,800 Salaries payable 4,500 Notes payable 82,000 Common stock 12,700 4,500 30.000 40,000 Total abilities 87,200 Stockholders' Equity Common stock Retained earnings 40,000 10.800 Total stockholders' equity Total liabilities and stockholders' equity 50.800 138,000 $ Total assets $ 98,000 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 From customers For salaries For supplies 0 Net cash flows from operating activities Cash Flows from Investing Activities Sale of investments Purchase building Net cash flows from investing activities Cash Flows from Financing Activities 0 Net cash flows from financing activities 0 Cash at the beginning of the year Cash at the end of the year