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 b b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $53,550 and Beth Cascade invested $99,450 of the $153,000 cash that was used to start the business. Beth was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Beth to receive 65 percent of the profits and Carl to get the remaining 35 percent. With regard to the $7,500 distribution, Beth withdrew $4,875 from the business and Carl withdrew $2,625. Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a income statement for Year 1. CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 Revenues $ Expenses 91,600 70,000 21,600 Net income $ Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepar a capital statement for Year 1. (Deductions should be indicated by a minus sign.) CASCADE COMPANY 0 Capital Statement For the Year Ended December 31, Year 1 Beginning capital balance $ Plus: Capital acquired from partners Plus: Net income Less: Withdrawal by partners Ending capital balance $ 53,550 7,500 (2,625) 58,425 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 Cash $ 58,425 Total Assets 58,425 Liabilities $ 0 Equity Carl Cascade, capital Beth Cascade, capital Total liabilities and equity $ 0 Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a statment 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: $ Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: 0 Net cash flow from financing activities Net change in cash Ending cash balance $ $ 0