Faith Busby and Jeremy Beatty started the B&B partnership on January 1, Year 1. The business acquired $92,500 cash from Busby and $157,500 from Beatty. During Year 1, the partnership earned $62,000 in cash revenues and paid $38,600 for cash expenses. Busby withdrew $2,500 cash from the business, and Beatty withdrew $5,400 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. Pet

Prepare the income statement. Prepare a capital statement. Prepare a balance sheet. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) Prepare a statement of cash flows. (Cash outflows should be indicated with a minus sigmi) B\&B PARTNERSHIP Statement of Cash Flows For the Year Ended December 31, Year 1