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Cascade Company was started on January 1, Year 1, when it acquired $168,000 cash from the owners. During Year 1, the company earned cash revenues of $96,300 and incurred cash expenses of $61,800. The company also paid cash distributions of $12,000.

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.)

b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $92,400 and Beth Cascade invested $75,600 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 55 percent of the profits and Carl to get the remaining 45 percent. With regard to the $12,000 distribution, Beth withdrew $3,600 from the business and Carl withdrew $8,400. (Amounts to be deducted should be indicated with minus sign.)

	CASCADE COMPANY Income Statement For the Year Ended December 31, Year 1 $0

	CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 $0

	CASCADE COMPANY Balance Sheet As of December 31, Year 1 Assets Total Assets 0 Liabilities Equity       Total liabilities and equity $0

	CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flow from operating activities: Net cash flow from operating activities $0 Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities 0 Net change in cash 0    Ending cash balance $0

Answer 1

Answer
Income Statement
For Year Ended December 31, Year-1
Revenues
Cash Revenue	96300
Total revenues		$         96,300
Expenses
Cash Expense	$        61,800
Total expense		$         61,800
Net income		$         34,500

Statement of Owner Capital- Carl Cascade
For Year Ended December 31, Year-1
Capital Balance - Beg
Add: Cash Accquired from Owner		$      1,68,000
Add: Net income		$         34,500
Less: Distribution		$        -12,000
End Balance as on Dec 31,		$      1,90,500

Balance Sheet
31 , December- Year-1
Assets
Current assets
Cash (168000+96300-61800-12000)	190500
Total current assets		$      1,90,500
Property, Plant, Equipment
Total assets		$      1,90,500
Liabilities and Owners' Equity
Current liabilities
Long-term liabilities
Carl Casade Capital's		$      1,90,500
Total Liabilities and Owners' Equity		$      1,90,500

Statement of Cash Flow (Using Indirect Method)
For the year ended Dec 31,year-1
Particulars		Amount
Cash flow from operating activities
Net Income		$         34,500
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities
Net Cash Flow From Operating Activities (A)		$         34,500
Cash Flow From Investing Activities
Net Cash Flow From Investing Activities (B)		0
Cash Flow From Financing Activities
Introduced Capital	168000
:Less: Cash Distribution	-12000
Net Cash Flow From Financing Activities (C )		156000
Net Change In Cash C=A+B+C		$      1,90,500
Beginning Cash Balance		0
Ending Cash Balance		$      1,90,500
Long-term liabilities
Carl Casade Capital's		$      1,90,500
Total Liabilities and Owners' Equity		$      1,90,500

Statement of Cash Flow (Using Indirect Method)
For the year ended June 31,20Y8
Particulars		Amount
Cash flow from operating activities
Net Income		$         34,500
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities
Net Cash Flow From Operating Activities (A)		$         34,500
Cash Flow From Investing Activities
Net Cash Flow From Investing Activities (B)		$0.00
Cash Flow From Financing Activities
Introduced Capital	$     1,68,000
:ess: Cash Distribution	$       -12,000
Net Cash Flow From Financing Activities (C )		$      1,56,000
Net Change In Cash C=A+B+C		$      1,90,500
Beginning Cash Balance		$                 -
Ending Cash Balance		$      1,56,000
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