Question

Squirrel Tree Services reports the following amounts on December 31. Assets Cash Supplies Prepaid insurance Liabilities and Stockholders' Equity $ 9,200 Accounts payable $ 14,200 3,300 Salaries payable 5,000 35,000 5,000 Notes payable 40,000 87,000 Common stock Retained earnings 10,300 Building In addition, the company reported the following cash flows. Cash Inflows Customers Borrow from the bank (note) Sale of investments Cash Outflows $90,000 Employee salaries 35,000 Supplies 32,500 Dividends Purchase building $ 37,000 19,000 14,000 92,000 Required: 1. Prepare a balance sheet. SQUIRREL TREE SERVICES Balance Sheet Assets Liabilities

Answer 1

- - Assets Cash Supplies Prepaid Insurance Building SQUIRREL TREE SERVICES Balance sheet - Leabilities, $9200 Accounts payable $ 14,200 $ 3300 Salones Payable $5,000 Notes payable $ 35,000 + 5000 Total Licchilities $54,300 $ 89,000 Stockholder's equity Common stock . $40,000 Retained Earrings | $10,300 Total Stockholderis Equity $50,300 Lan Total liah lhes and 104 500 stockholde's why - Assets SQUIRREL TREE SERVICES Statement of Cash flows Cash flow from operating Activities ... Cash creceived from Cestomers $90,000 Cash paid for. Erigloyee salaries C$ 37,000) Cash paid for Supplies ($ 13,000) - $34,000 I Net Cash flow from operating Activities I Cash flow from gowesting activities is cash received from sobe of grestements cash paid to purchase building Net Cash Used by Investing Activities $32,500 ($98.000) |($53,500)

cash flow from grugning Activities Cash receined from the Bank Crabe) $35,000 Cash paid for services ($14,000) L Net Cash provided by finming Achilities 21,090 Net decrease/ Sherease in Cash ($4550) Cash Balance, beginning of year $13,700 I Cash Balance, end of year $9200 Working is Begining balance og Cosh $9200 +$160,000-$157,560 = $13,700 -
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