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2. Prepare a statement of cash flows (Cash outflows and decreases in cash should be indicated by a minus dian SQUIRREL TREE SERVICES Statement of Cash Flows Cash Flows from Operating Activities From customers $ 100,000 For salaries (5.500) For supplies (24.000) 70.500 Net cash flows from operating activities Cash Flows from Investing Activities Purchase building Sale of investments (102.000) 38,000 I (64,000) Net cash flows from investing activities Cash Flows from Financing Activities Borrow from bank Pay dividends 40.000 (16,500) Net cash flows from financing activities 23.500 30,000 9,700 Cash at the beginning of the year Cash at the end of the year 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 common stock 40,000 Building Retained earnings 9,800 In addition, the company reported the following cash flows. Cash Outflows 100,000 Employee salaries Cash Inflows Customers Borrow from the bank (note) Sale of investments 40,000 Supplies 38,000 Dividends Purchase building $42.000 24,000 16.500 102.000 Required: 1. Prepare a balance sheet. SQUIRREL TREE SERVICES Balance Sheet Assets bille Required: 1. Prepare a balance sheet. SQUIRREL TREE SERVICES Balance Sheet Assets Liabilities $ $ Building Cash Supplies Prepaid insurance 92.000 Notes payable 9.700 Accounts payable 3,800 Salaries payable 5,500 40.000 15,700 5.500 Total liabilities 61 200 Stockholders' Equity 40.000 Common stock Retained earnings 9.800 Total stockholders' equity Total liabilities and stockholders' equity 49.800 111.000 Total assets $ 111,000 $ 2. Prepare a statement of cash flows. (Cash outflows and decreases in cash should be indicated by a minus sig

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