Problem 8-20A (Algo) 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 $154,000 cash from the owners. During Year 1, the company earned cash revenues of $84,200 and incurred cash expenses of $67,500. 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.)