Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $86,800 cash from Busby and $193,200 from Beatty. During Year 1, the partnership earned $66,400 in cash revenues and paid $28,450 for cash expenses. Busby withdrew $2,600 cash from the business, and Beatty withdrew $2,500 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&B's Year 1 fiscal year. Prepare the income statement. B&B PARTNERSHIP Income Statement For the Year Ended December 31, Year 1 Revenues Expenses Net income $ $ 0 Prepare a capital statement. B&B PARTNERSHIP Capital Statement For the Year Ended December 31, Year 1 Beginning capital balance Plus: Capital acquired from owner Less: Net loss IT: Ending capital balance $ Prepare a balance sheet. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) B&B PARTNERSHIP Balance Sheet As of December 31, Year 1 Assets Total assets $ 0 Liabilities Equity 0 Total equity Total liabilities and equity $ 0 Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) B&B PARTNERSHIP Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities: $ 0 Net cash flow from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash 0 Ending cash balance $ 0