Cascade Company was started on January 1, Year 1, when it acquired $169,000 cash from the owners. During Year 1, the company earned cash revenues of $81,600 and incurred cash expenses of $64,800. The company also paid cash distributions of $13,000.

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.)

Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $67,600 and Beth Cascade invested $101,400 of the $169,000 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 $13,000 distribution, Beth withdrew $7,800 from the business and Carl withdrew $5,200.

Complete this question by entering your answers in the tabs below.

Inc Stmt

Stmt of Changes

Bal Sheet

Cash Flows