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[The following information applies to the questions displayed below.] Cascade Company was started on January 1, 2018, when it acquired $169,000 cash from the owners.

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

Cascade Company was started on January 1, 2018, when it acquired $169,000 cash from the owners. During 2018, the company earned cash revenues of $92,300 and incurred cash expenses of $63,200. The company also paid cash distributions of $6,000.

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 COMPANY
Balance Sheet
As of December 31, 2018
Assets
Cashselected answer correct not attempted
not attempted not attempted
Total Assets 0
Liabilities not attempted
Equity
Carl Cascade, capitalselected answer correct not attempted not attempted
not attempted not attempted not attempted
Total liabilities

CASCADE COMPANY
Balance Sheet
As of December 31, 2018
Assets
Cash not attempted
not attempted
Total Assets 0
Liabilities not attempted
Equity
Carl Cascade, capitalt not attempted not attempted
not attempted not attempted
Total liabilities

B. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $101,400 and Beth Cascade invested $67,600 of the $169,000 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 $6,000 distribution, Beth withdrew $1,800 from the business and Carl withdrew $4,200.

CASCADE COMPANY
Income Statement
For the Year Ended December 31, 2018
Revenues not attempted
Expenses not attempted
net income $0
CASCADE COMPANY
Capital Statement
For the Year Ended December 31, 2018
Beginning capital balance not attempted
Plus: Capital acquired from partners not attempted
Plus: Net income not attempted
Less: Withdrawal by partners not attempted
Ending capital balances $0
CASCADE COMPANY
Statement of Cash Flows
For the Year Ended December 31, 2018
Cash flow from operating activities:
Receipts from revenue not attempted
Paid for expenses not attempted
not attempted not attempted
Net cash flow from operating activities $0
Cash flows from investing activities not attempted
Cash flows from financing activities:
Proceeds from partner not attempted
Paid for partners withdrawal not attempted
not attempted not attempted
Net cash flow from financing activities 0
Net change in cash 0
Plus: Beginning cash balance not attempted
Ending cash balance $0
  • CASCADE COMPANY
    Balance Sheet
    As of December 31, 2018
    Assets
    Cashselected answer correct not attempted
    not attempted not attempted
    Total Assets 0
    Liabilities not attempted
    Equity
    not attempted not attempted not attempted
    Beth Cascade, capitalselected answer correct not attempted not attempted
    Carl Cascade, capitalselected answer correct not attempted not attempted
    Total liabilities and equity $0

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