Missing Mail Folders after upgrading to Mountain Lion

Prior to my upgrade to Mountain Lion (from Snow Leopard I had setup mail folders.  After the upgrade they were gone.  I cannot see them.  I cannot see a way to build a folder now.  Can someone assist?  Thanks.

"Folders" are now called "Mailboxes". To add a mailbox, select Mailbox --> New Mailbox. You will be prompted to enter a location and a name. Then you will see your mailbox appear in the sidebar and you can drag messages to it. You can also make smart mailboxes that automatically add messages to themselves according to a set of predefined rules. Select Mailbox --> New Smart Mailbox and enter a name and a set of rules.

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