Cascade Company was started on January 1, Year 1, when it acquired $160,000 cash from the owners. During Year 1, the company earned cash revenues of $90,400 and incurred cash expenses of $62,500. The company also paid cash distributions of $7,000. 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.)

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

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

• Inc Stmt
• Stmt of Changes
• Bal Sheet
• Cash Flows