Exercise 11-3A (Algo) Effect of accounting events on the financial statements of a partnership LO 11-1 Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $74,400 cash from Busby and $165,600 from Beatty. During Year 1, the partnership earned $62,400 in cash revenues and paid $40,050 for cash expenses. Busby withdrew $3,700 cash from the business, and Beatty withdrew $3,000 cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement, balance sheet, and statement of cash flows for B&B's Year 1 fiscal year. Note: For Statement of Cash Flows only, indicate amounts to be deducted and cash outflows with a minus sign. Round your profit sharing ratio to 2 decimal places and final answers to the nearest dollar amount. B&B PARTNERSHIP Income Statement For the Year Ended December 31, Year 1 Revenues Expenses Net income: $ 62,400 40,050 $ 22,350