In: Accounting
Cascade Company was started on January 1, 2018, when it acquired $156,000 cash from the owners. During 2018, the company earned cash revenues of $80,300 and incurred cash expenses of $67,500. The company also paid cash distributions of $5,500.
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 is a sole proprietorship owned by Carl Cascade.
A) Prepare a Balance Sheet
B) Prepare a Statement of Cash Flows