! Required information [The following information applies to the questions displayed below.) Cascade Company was started on January 1, Year 1, when it acquired $165,000 cash from the owners. During Year 1, the company earned cash revenues of $87,800 and incurred cash expenses of $60,800. The company also paid cash distributions of $8,000. 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.) b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $115,500 and Beth Cascade invested $49,500 of the $165,000 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 $8,000 distribution, Beth withdrew $2,400 from the business and Carl withdrew $5,600. (Amounts to be deducted should be indicated with minus sign.) CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 $ 0 CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 $ 0 CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets Total Assets 0 Liabilities Equity Total liabilities and equity $ 0 CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: $ 0 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 0 Ending cash balance $ 0