Auto Spa Company was started on January 1, 2014, when the owners invested $159,000 cash in the business. During 2014, the company earned cash revenues of $91,300 and incurred cash expenses of $62,400. The company also paid cash distributions of $11,500.

Required

Prepare a 2014 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows using each of the following assumptions. (Consider each assumption separately.)

Auto Spa is a sole proprietorship owned by B. Burns.

a-1.

Prepare an income statement for 2014.

a-2.

Prepare a capital statement (statement of changes in equity) for 2014.

a-3.	Prepare a balance sheet for 2014.

a-4.	Prepare a statement of cash flows for 2014. (Amounts to be deducted should be indicated with minus sign.)