Problem 8-20 Effect of business structure on financial statements LO 8-1

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Cascade Company was started on January 1, 2018, when it acquired $167,000 cash from the owners. During 2018, the company earned cash revenues of $98,300 and incurred cash expenses of $63,100. The company also paid cash distributions of $12,500.

Required

Prepare a 2018 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.)

Prepare a statement of changes in stockholders equity for 2018. (Negative amount should be indicated by a minus sign.)

Prepare a balance sheet for 2018.

Prepare a statement of cash flows for 2018. (Negative amount and deductible amount should be indicated by a minus sign.)