Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $71,300 cash from Busby and $158,700 from Beatty. During Year 1, the partnership earned $60,200 in cash revenues and paid $36,600 for cash expenses. Busby withdrew $3,700 cash from the business, and Beatty withdrew $3,500 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, 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: $60,200

Expenses: $36,600

Net income: $23,600

B&B PARTNERSHIP

Capital Statement

For the Year Ended December 31. Year 1

Beginning capital balance: $0

Plus capital acquired from partners: $230,000

Plus net income: $23,600

Less withdrawal by partners: -$7,200

Ending capital balance: $246,400

B&B PARTNERSHIP

Statement of Cash Flows

For the Year Ended December 31. Year 1

Cash flows from operating activities:

Paid for expenses: -$36,600

Receipts from revenues: $60,200

Net cash flow from operating activities: $23,600

Cash flows from investing activities: $0

Net cash flow from investing activities: $0

Cash flows from financing activities:

Proceeds from partners: $230,000

Paid for partners' withdrawals: -$7,200

Net cash flow from financing activities: $222,800

Net change in cash: $246,400

Plus: Beginning cash balance: $0

Ending cash balance: $246,400

Based on this information, create a balance sheet for B&B PARTNERSHIP. (Note: be sure to include F. Busby, Capital and J. Beatty Capital on the balance sheet.)