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 $155,000 cash from the owners. During Year 1, the company earned cash revenues of $94,900 and incurred cash expenses of $60,400. The company also paid cash distributions of $5,000 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 $62,000 and Beth Cascade invested $93,000 of the $155,000 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 60 percent of the profits and Carl to get the remaining 40 percent. With regard to the $5,000 distribution, Beth withdrew $3,000 from the business and Carl withdrew $2.000 Required information Complete this question by entering your answers in the tabs below. Stmt of Changes Inc Stmt Cash Flows Bal Sheet Prepar a capital statement for Year 1. (Deductions should be indicated by a minus sign.) LS Beginning capital balance Plus: Capital acquired from partners Plus: Net Income Less: Withdrawal by partners Ending capital balance 0 155,000 34,500 (5,000) 184,500 $ Required information 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. CASE BOOM $ Revenues Expenses Net income 94,900 60,400 34,500 $ Required information Prepare a statment of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) Cash flows from operating activities: $ 0 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 0 $ 0 Ending cash balance Prev 5 6 of 9 Next > Required information Stmt of Changes Inc Stmt Bal Sheet Cash Flows Prepare a balance sheet for Year 1. Assets Cash Total Assets Liabilities Equity Carl Cascade, capital Beth Cascade, capital $ Total liabilities and equity