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Cascade Company was started on January 1, Year 1, when it acquired $162,000 cash from the owners. During Year 2, the company earned cash revenues of $81,200 and incurred cash expenses of $67,200. 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.)

Required Part b

b-1. Prepare a Year 1 income statement. b-2. Prepare a Year 1 capital statement (statement of changes in equity). b-3. Prepare a Year 1 balance sheet. b-4. Prepare a Year 1 statement of cash flows.

Assume Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $48,600 and Beth Cascade invested $113,400 of the $162,000 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 70 percent of the profits and Carl to get the remaining 30 percent. With regard to the $10,500 distribution, Beth withdrew $3,150 from the business and Carl withdrew $7,350.

Outline:

Income statement:

Capital statement:

Balance sheet:

Statement of Cash Flows:

Required information Problem 11-22A (Algo) Effect of business structure on financial statements LO 11-1 [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $162,000 cash from the owners, During Year 2 , the company earned cash revenues of $81,200 and incurred cash expenses of $67,200. 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.) Problem 11-22A (Algo) Part b b-1. Prepare a Year 1 income statement. b-2. Prepare a Year 1 capital statement (statement of changes in equity). b-3. Prepare a Year 1 balance sheet. b-4. Prepare a Year 1 statement of cash flows. Assume Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Cari Cascade invested $48,600 and Beth Cascade invested $113,400 of the $162,000 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 70 percent of the profits and Carl to get the remaining 30 percent. With regard to the $10,500 distribution, Beth withdrew $3,150 from the business and Carl withdrew $7,350. Complete this question by entering your answers in the tabs below. Prepare a Year 1 income statement. Assume Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $48,600 and Beth Cascade invested $113,400 of the $162,000 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 70 percent of the profits and Carl to get the remaining 30 percent. With regard to the $10,500 distribution, Beth withdrew $3,150 from the business and Carl withdrew $7,350. Prepare a Year 1 capital statement (statement of changes in equity). Assume Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $48,600 and Beth Cascade invested $113,400 of the $162,000 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 70 percent of the profits and Cari to get the remaining 30 percent. With regard to the $10,500 distribution, Beth withdrew $3,150 from the business and Carl withdrew $7,350. (Enter amounts to be deducted with a minus sign.) Prepare a Year 1 balance sheet. Assume Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $48,600 and Beth Cascade invested $113,400 of the $162,000 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 70 percent of the profits and Carl to get the remaining 30 percent. With regard to the $10,500 distribution, Beth withdrew $3,150 from the business and Carl withdrew $7,350. Required information Prepare a Year 1 statement of cash flows. Assume Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $48,600 and Beth Cascade invested $113,400 of the $162,000 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 70 percent of the profits and Cari to get the remaining 30 percent. With regard to the $10,500 distribution, Beth withdrew $3,150 from the business and Carl withdrew $7,350. (Enter cash outflows with a minus sign.)

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