Final answer:
The simile 'as cold as ice' is used to indicate that Timothy and Nate's toes were very cold after playing in the snow.
Step-by-step explanation:
The underlined simile in the story, stating that Timothy and Nate's toes were as cold as ice, tells the reader that their toes were very cold. This simile is a comparative figure of speech that is used to highlight just how cold their toes had gotten from playing in the snow despite their enjoyment and disregard for the cold weather. Similes often use the words 'like' or 'as' to draw a comparison between two different things to emphasize a particular quality, in this case, the coldness which is comparable to ice.