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 $154.000 cash from the owners. During Year 1, the company earned cash revenues of $84.600 and incurred cash expenses of $61,100. The company also paid cash distributions of $10,000 Required Prepare a Year 1income 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 o. Cascade is a sole proprietorship owned by Carl Cascade CASCADE COMPANY Balance Sheet ok As of December 31, Year 1 unt Assets Cash $ 177,500 ences Total Assets Liabilities Equity 177,500 $ 177,500 Total liabilities and equity $ 177,500 CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Proceeds from owner $ 154,000 $ 154,000 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 154,000 Ending cash balance $ 154,000