Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1 Skip to question [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $169,000 cash from the owners. During Year 1, the company earned cash revenues of $83,200 and incurred cash expenses of $60,300. The company also paid cash distributions of $14,500. 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 Cascade is a corporation. It issued 10,000 shares of $11 par common stock for $169,000 cash to start the business.

CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets \begin{tabular}{|l|l|l|} \hline Assets & & \\ \hline \hline & & \\ \hline Total Assets & & \\ \hline Liabilities & & \\ \hline Stockholders' equity & & \\ \hline & & \\ \hline & & \\ \hline Total paid-in capital & & \\ \hline & & \\ \hline \hline & & \\ \hline Total liabilities and Stockholders' equity & & \\ \hline \end{tabular} CASCADE COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 \begin{tabular}{|l|l|l|} \hline Beginning common stock & & \\ \hline Plus: Issuance of common stock & & \\ \hline & & \\ \hline & & \\ \hline & & \\ \hline Total stockholders' equity & & \\ \hline \end{tabular}