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 $90,100 and incurred cash expenses of $62,700. The company also paid cash distributions of $5,500.

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.)

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

Prepare an income statement for Year 1.

CASCADE COMPANY
Income Statement
For the Year Ended December 31, Year 1
	$

b.

Prepare a capital statement (statement of changes in equity) for Year 1. (Deductions should be indicated by a minus sign.)

CASCADE COMPANY
Capital Statement
For the Year Ended December 31, Year 1
	$

c.

Prepare a balance sheet for Year 1.

CASCADE COMPANY
Balance Sheet
As of December 31, Year 1
Assets
Total Assets		0
Liabilities
Equity
Total liabilities and equity		$0

d.

Prepare a statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.)

CASCADE COMPANY
Statement of Cash Flows
For the Year Ended December 31, Year 1
Cash flows from operating activities:
Net cash flow from operating activities		$0
Cash flows from investing activities
Cash flows from financing activities:
Net cash flow from financing activities		0
Net change in cash		0
Ending cash balance		$0