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 $162,000 cash from the owners. During Year 1, the company earned cash revenues of $89,300 and incurred cash expenses of $64,600. The company also paid cash distributions of $9,000 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 $64,800 and Beth Cascade invested $97,200 of the $162,000 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 $9,000 distribution, Beth withdrew $5,400 from the business and Carl withdrew $3,600. Complete this question by entering your answers in the tabs bel Bal Sheet Cash Flows Stmt of Changes Inc Stmt Prepar a capital statement for Year 1. (Deductions should be indicated by a minus sign.) CASCADE COMPANY 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 0 137,300 24,700 (9,000) 153,000 (Inc Stit Bal Sheet > Prepare a balance sheet for Year 1. CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets Cash $ 306,900 306,900 Total Assets Liabilities Equity Treasury stock 306,900 Total liabilities and equity $ 306,900 CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Receipts from revenues $ 89,300 Paid for expenses 64,600 $ 153,900 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Proceeds from issue of stock Paid for partners' withdrawals $ 162,000 (9,000) Net cash flow from financing activities Net change in cash 153,000 306,900 Ending cash balance $ 306,900