Required information

Skip to question

[The following information applies to the questions displayed below.]

Cascade Company was started on January 1, Year 1, when it acquired $161,000 cash from the owners. During Year 1, the company earned cash revenues of $80,000 and incurred cash expenses of $68,800. The company also paid cash distributions of $7,000.

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.)

Cascade is a sole proprietorship owned by Carl Cascade.

CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 \begin{tabular}{|l|l|} \hline & \\ \hline & \\ \hline & \\ \hline & $18 \\ \hline \end{tabular} CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets Total Assets Liabilities Equity Total liabilities and equity CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities