[The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $169,000 cash from the owners. During Year 1, the company earned cash revenues of $97,900 and incurred cash expenses of $65,500. The company also paid cash distributions of $7,500. 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.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
Cascade Company was started on January 1, Year 1, when it acquired $169,000 cash from the owners.
During Year 1, the company earned cash revenues of $97,900 and incurred cash expenses of $65,500.
The company also paid cash distributions of $7,500.
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.)
a. Cascade is a sole proprietorship owned by Carl Cascade.
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $169,000 cash from the owners. During Year 1, the company earned cash revenues of $97,900 and incurred cash expenses of $65,500. The company also paid cash distributions of $7,500. 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.) a. Cascade is a sole proprietorship owned by Carl Cascade.
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