Cascade Company was started on January $1,$ Year $1,$ when it acquired $$60,000$ cash from the owners. During Year $1,$ the company earned cash revenues of $$35,000$ and incurred cash expenses of $$18,100.$ The company also paid cash distributions of $$4,000.$

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.$)$

b$.$ Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $$24,000$ and Beth Cascade invested $$36,000$ of the $$60,000$ cash that was used to start the business. Beth was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Beth to receive $60$ percent of the profits and Carl to get the remaining $40$ percent. With regard to the $$4,000$ distribution, Beth withdrew $$2,400$ from the business and Carl withdrew $$1,600.$