Required information 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 $153,000 cash from the owners. During Year 1, the company earned cash revenues of $91,600 and incurred cash expenses of $70,000. The company also paid cash distributions of $7,500. 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 a a. Cascade is a sole proprietorship owned by Carl Cascade. a. Cascade is a sole proprietorship owned by Carl Cascade. Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare an income statement for Year 1. CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 Revenues $ Expenses Net income 91,600 (70,000) 21,600 $ a. Cascade is a sole proprietorship owned by Carl Cascade. Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a capital statement (statement of changes in equity) for Year 1. (Deductions should be indicated by CASCADE COMPANY Capital Statement 0 For the Year Ended December 31, Year 1 Common stock $ Less: Capital acquired from owner Plus: Net income (70,000) 7,500 21,600 (40,900) Less: Withdrawal by owner $ a. Cascade is a sole proprietorship owned by Carl Cascade. Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a balance sheet for Year 1. CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets Total Assets 0 Liabilities Equity Total liabilities and equity 0 Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a statement of cash flows for Year 1. (Cash outflows should be indicated CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities Net change in cash 0 Ending cash balance $ 0