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Required information Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1 [The following information applies to the questions displayed below/) Cascade Company was started on January 1, Year 1, when it acquired $159.000 cash from the owners. During Year 1, the company eamed cash revenues of $81,000 and incurred cash expenses of $65,600. The company also paid cash distributions of $11,500. Required Prepare a Year 1 income statement, capital statement (statement of changef in equity), balance sheet, and statement of cash flows under each of the foliowing assumptions. (Consider each assuniption separately) Problem 8-20A (Algo) Part b b. Cascade is a parthership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $55,650 and Beth Coscade invested $103,350 of the $159,000 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 $11,500 distribution, Beth withdrew $7,475 from the business and Carl withdrew Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Prepare a income statement for Year 1. Complete this question by entering your answers in the tabs below. Prepar a capital statement for Year 1. (Deductions should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. Prepare a balance sheet for Year 1 . Prepare a statment of cash flows for Year 1 . (Cash outflows should be indicated with a minus sign.)

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