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Cascade Company was started on January 1, Year 1, when it acquired $158,000 cash from the owners. During Year 1, the company earned cash revenues of $98,200 and incurred cash expenses of $68,200. 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.) Award: 5.00 points b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $63,200 and Beth Cascade invested $94,800 of the $158,000 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 $10,500 distribution, Beth withdrew $6,300 from the business and Carl withdrew $4,200. Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepar a capital statement for Year 1. (Deductions should be indicated by a minus sign.) CASCADE COMPANY Capital Statement For the Year Ended December 31, Year 1 Beginning capital balance Plus: Net income Less: Withdrawal by partners Ending capital balance $ 0
Cascade Company was started on January 1, Year 1, when it acquired $158,000 cash from the owners. During Year 1, the company earned cash revenues of $98,200 and incurred cash expenses of $68,200. 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.) Award: 5.00 points b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $63,200 and Beth Cascade invested $94,800 of the $158,000 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 $10,500 distribution, Beth withdrew $6,300 from the business and Carl withdrew $4,200. Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a balance sheet for Year 1. Assets Cash Total Assets Liabilities Equity CASCADE COMPANY Balance Sheet As of December 31, Year 1 Carl Cascade, capital Total liabilities and equity $ 0 0
b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $63,200 and Beth Cascade invested $94,800 of the $158,000 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 $10,500 distribution, Beth withdrew $6,300 from the business and Carl withdrew $4,200. Complete this question by entering your answers in the tabs below. Inc Stmt Stmt of Changes Bal Sheet Cash Flows Prepare a statment of cash flows for Year 1. (Cash outflows should be indicated with a minus sign.) CASCADE COMPANY Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Receipts from revenues Paid for expenses Net cash flow from operating activities 0 Cash flows from investing activities Cash flows from financing activities: Proceeds from partners Paid for partners' withdrawals Net cash flow from financing activities Net change in cash Ending cash balance $ $ 0 0 0