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 $160,000 cash from the owners. During Year 1, the company earned cash revenues of $81,800 and incurred cash expenses of $68,900. The company also paid cash distributions of $13,000. 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 a a. Cascade is a sole proprietorship owned by Carl Cascade. Prepare an income statement for Year 1. Prepare a capital statement (statement of changes in equity) for Year 1 . (Deductions should be indicated by a min Prepare a balance sheet for Year 1. Prepare a statement of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.)