Cascade Company was started on January 1, 2018, when it acquired $163,000 cash from the owners. During 2018, the company earned cash revenues of $86,300 and incurred cash expenses of $66,200. The company also paid cash distributions of $10,500.

Required

Prepare a 2018 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)

1. Cascade is a sole proprietorship owned by Carl Cascade.

Prepare an income statement for 2018.

Prepare a capital statement (statement of changes in equity) for 2018.

Prepare a balance sheet for 2018.

Prepare a statement of cash flows for 2018.

CASCADE COMPANY Income Statement For the Year Ended December 31, 2018 CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, 2018 Cash flow from operating activities Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities CASCADE COMPANY Capital Statement For the Year Ended December 31, 2018 Net cash flow from financing activities Net change in cash Ending cash balance CASCADE COMPANY Balance Sheet As of December 31, 2018 Assets Total Assets Liabilities Equity Total liabilities and equity