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 $91,700 and incurred cash expenses of $61,500. The company also paid cash distributions of $9,500. 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 c. Cascade is a corporation. It issued 9,000 shares of $11 par common stock for $153,000 cash to start the business. 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 Stockholders' equity Carl Cascade, capital Total paid-in capital Total liabilities and Stockholders' equity $ 113,300 113,300 $ 0 $ 0 $ 0 < Stmt of Changes Cash Flows >