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 $152,000 cash from the owners. During Year 1, the company earned cash revenues of $98,800 and incurred cash expenses of $67.000. 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. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a capital statement (statement of changes in equity) for Yea CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 $ 152,000 $ 152,000 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 Total Assets Liabilities Equity $ 152,000 152,000 $ 176,300 Total liabilities and equity $ 176,300 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 Net cash flow from financing activities Net change in cash Ending cash balance 69 $ 0 0 0 $ 0