Required information [The following information applies to the questions displayed below.) Cascade Company was started on January 1, Year 1, when it acquired $169,000 cash from the owners. During Year 1, the company earned cash revenues of $81,800 and incurred cash expenses of $64,100. The company also paid cash distributions of $11,500. 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.) C. Cascade is a corporation. It issued 9,000 shares of $8 par common stock for $169,000 cash to start the business. CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 Revenues $ Expenses Net income 81,800 64,100 17,700 $ CASCADE COMPANY Statement of Changes in Stockholders' Equity For the Year Ended December 31, Year 1 Beginning common stock 0 Plus: Issuance of common stock 169,000 Ending common stock 169,000 Beginning retained earnings 0 Plus: Net income 17,700 Less: Dividends 11,500 Ending retained earnings 29,200 Total stockholders' equity $ 198,200 CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets Cash $ 175,200 Total Assets 175,200 Liabilities $ 0 Stockholders' equity Common stock Paid-in capital in excess of par 72,000 97,000 Total paid-in capital Retained earnings $ 169,000 6,200 Total liabilities and Stockholders' equity $ 175,200 CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Paid for expenses $ 64,100 Receipts from revenues 81,800 $ 145,900 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Paid for dividends $ 11,500 169,000 Proceeds from issue of stock Net cash flow from financing activities Net change in cash Plus: Beginning cash balance Ending cash balance 180,500 326,400 0 $ 326,400