Required information

$[$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 $$81,100$ and incurred cash expenses of $$63,800.$ The company

also paid cash distributions of $$10,500.$

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.$)$

a$.$ Cascade is a sole proprietorship owned by Cari Cascade

Income

Statement

Statement of

Changes

Balance Sheet

Statement of

Cash Flows

Prepare a capital statement $($statement of changes in equity$)$ for Year $1.$

Note: Deductions should be indicated by a minus sign.

CASCADE COMPANY

Capital Statement

For the Year Ended December $31,$ Year $1$

CASCADE COMPANY

Statement of Cash Flows

For the Year Ended December $31,$ Year $1$

Cash flows from operating activities:

Net cash flow from operating activities

$

Cash flows from investing activities

Cash flows from financing activities: