LO 11-1 Exercise 11-3B Effect of accounting crents on the financial statements of a partnership D. Reed and J. Files started the RF partnership on January 1 Year 1. The business acquired $70,000 cash from Reed and $140,000 from Files. During Year I, the partnership carned $75,000 in cash reve nues and paid $39.000 for cash expenses. Reed withdrew $2.000 cash from the business, and Files withdrew $4,000 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 the RF partnership for the Year 1 fiscal year. RF Partnership Financial Statements Income Statement Capital Statement RF Partnership Financial Statements Balance Sheet Statement of Cash Flows