Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $105,300 cash from Busby and $164,700 from Beatty. During Year 1, the partnership earned $61,900 in cash revenues and paid $32,700 for cash expenses. Busby withdrew $2,200 cash from the business, and Beatty withdrew $5,100 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 (statement of changes in equity), balance sheet, and statement of cash flows for B&Bs Year 1 fiscal year. Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $105,300 cash from Busby and $164,700 from Beatty. During Year 1, the partnership earned $61,900 in cash revenues and paid $32,700 for cash expenses. Busby withdrew $2,200 cash from the business, and Beatty withdrew $5,100 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 (statement of changes in equity), balance sheet, and statement of cash flows for B&Bs Year 1 fiscal year. B&B PARTNERSHIP Capital Statement For the Year Ended December 31, Year 1 Beginning capital balance Plus: Capital acquired from owner Less: Net loss Ending capital balance B&B PARTNERSHIP Balance Sheet As of December 31, Year 1 Assets Cash Total assets Liabilities Equity F. Busby, Capital Total equity Total liabilities and equity B&B PARTNERSHIP 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: Net cash flow from investing activities $0 Cash flows from financing activities: Net cash flow from financing activities 0 Net change in cash 0 Ending cash balance $0