Problem 8-20 (Aligo) Effect of business structure on financial statements LO 8-1 [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $159,000 cash from the owners. During Year 1, the company earned cash revenues of $83,700 and incurred cash expenses of $67,300. The company also paid cash distributions of $6,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.) Problem 8-20A (Algo) Part c c. Cascade is a corporation. It issued 8,000 shares of $12 par common stock for $159,000 cash to start the business.