Question
Required information [The following information applies to the questions displayed below.] Cascade Company was started on January 1, 2018, when it acquired $168,000 cash from
Required information [The following information applies to the questions displayed below.] Cascade Company was started on January 1, 2018, when it acquired $168,000 cash from the owners. During 2018, the company earned cash revenues of $87,000 and incurred cash expenses of $69,200. The company also paid cash distributions of $8,000. Required Prepare a 2018 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 partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $109,200 and Beth Cascade invested $58,800 of the $168,000 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 65 percent of the profits and Carl to get the remaining 35 percent. With regard to the $8,000 distribution, Beth withdrew $2,400 from the business and Carl withdrew $5,600.
Prepare a balance sheet for 2018.
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Prepare a statment of cash flows for 2018. (Negative amount and deductible amount should be indicated by a minus sign.)
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