Cascade Company was started on January $1,$ Year $1,$ when it acquired $$167,000$ cash from the owners. During Year $1,$ the company earned cash revenues of $$81,400$ and incurred cash expenses of $$60,600.$ The company also paid cash distributions of $$8,500.$

Required

Prepare a Year $1$ 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.$)$

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

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Income

Statement of

Balance Sheet Statement of Statement

Changes Cash Flows

Prepare an income statement for Year $1.$

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