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.$)$

c$.$ Cascade is a corporation. It issued $5,000$ shares of $$5$ par common stock for $$60,000$ cash to start the business.