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 $66,800 in cash revenues and paid $31,400 for cash expenses. Busby withdrew $2,000 cash from the business, and Beatty withdrew $3,300 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.

MARLIN JONES SOLE PROPRIETORSHIP Balance Sheet As of December 31, Year 1 Assets Cash Common stock Total assets $ 0 Liabilities Equity Appropriated retained earnings Dividends payable Total liabilities and equity $ 0 Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sign.) MARLIN JONES SOLE PROPRIETORSHIP 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