Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $87,500 cash from Busby and $162,500 from Beatty. During Year 1, the partnership earned $63,900 in cash revenues and paid $25,450 for cash expenses. Busby withdrew $2,800 cash from the business, and Beatty withdrew $3,600 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.

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Prepare the income statement. \begin{tabular}{|l|l|} \hline \multicolumn{2}{|c|}{ B\&B PARTNERSHIP } \\ \hline \multicolumn{2}{|c|}{ Capital Statement } \\ \hline For the Year Ended December 31, Year 1 \\ \hline Beginning capital balance & \\ \hline & \\ \hline & \\ \hline & $ \\ \hline Ending capital balance & 0 \\ \hline \end{tabular} Note: Do not round intermediate calculations and round your final answer to \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ B\&B PARTNERSHIP } \\ \hline \multicolumn{2}{|c|}{ Bs of December 31, Year 1 } \\ \hline Assets & & \\ \hline & & \\ \hline & & $ \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Equity & & \\ \hline & & \\ \hline & & \\ \hline Total equity & & \\ \hline Total liabilities and equity & & \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|r|} \hline \multicolumn{2}{|c|}{ B\&B PARTNERSHIP } \\ \hline \multicolumn{2}{|c|}{ For the Year Ended December 31, Year 1 } \\ \hline Cash flows from operating activities: & & \\ \hline & & \\ \hline Net cash flow from operating activities & & $ \\ \hline Cash flows from investing activities: & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from investing activities & & \\ \hline Cash flows from financing activities: & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from financing activities & & \\ \hline Net change in cash & & \\ \hline & & \\ \hline Ending cash balance & & \\ \hline \hline \end{tabular}