e. 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. Big Picture Project 2020 Survey Instructions DUE: March 4/5, 2020 Bert is planning to start a bicycle shop. He is exploring different options for financing his business, and trying to decide whether he should focus more on bicycle repairs and maintenance, selling new bicycles or a balance of both activities. The following transactions and financial statements examine the financial impact of each option he is considering. Plan A: Primarily debt funded (from creditors); focus on service (repairs & maintenance); requires more investment in equipment and higher salary expense (for more skilled workers.) Plan B: Primarily equity funded (from stockholders); focus on merchandise sales, incurs higher rent expense for nicer showroom. Plan C Balances debt and equity funding. Balances earning revenue from service and merchandise sales. Requirements: 1. List the annual transactions for your plan in the Horizontal Transaction Analysis table. (20 points) - Indicate the increase / (decrease) to each account involved in the transaction - Identify the type of cash flow activity for all cash transactions (OA Operating, IA Investing FA Financing) - Record the Closing Entry for each year by zeroing out the temporary accounts - Calculate the total in each column at the end of the each year. Permanent account balances will carry forward from one year to the next, so year end totals will accumulate through the years. e. 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. Big Picture Project 2020 Survey Instructions DUE: March 4/5, 2020 Bert is planning to start a bicycle shop. He is exploring different options for financing his business, and trying to decide whether he should focus more on bicycle repairs and maintenance, selling new bicycles or a balance of both activities. The following transactions and financial statements examine the financial impact of each option he is considering. Plan A: Primarily debt funded (from creditors); focus on service (repairs & maintenance); requires more investment in equipment and higher salary expense (for more skilled workers.) Plan B: Primarily equity funded (from stockholders); focus on merchandise sales, incurs higher rent expense for nicer showroom. Plan C Balances debt and equity funding. Balances earning revenue from service and merchandise sales. Requirements: 1. List the annual transactions for your plan in the Horizontal Transaction Analysis table. (20 points) - Indicate the increase / (decrease) to each account involved in the transaction - Identify the type of cash flow activity for all cash transactions (OA Operating, IA Investing FA Financing) - Record the Closing Entry for each year by zeroing out the temporary accounts - Calculate the total in each column at the end of the each year. Permanent account balances will carry forward from one year to the next, so year end totals will accumulate through the years