Cascade Company was started on January 1, Year 1, when it acquired $151,000 cash from the owners. During Year 1, the company earned cash revenues of $90,600 and incurred cash expenses of $62,000. The company also paid cash distributions of $13,000. 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.)

Cascade Company

Income statement for the year ended year 1

Sales Revenue                   $90,600

Less Expenses                   $62,000

Net Income                         $28,600

Cascade Company

Statement of changes in equity for the year ended year 1

                                                Capital       Retained Income          Total

Beginning of the Year :

Opening Balance                  $151,000                 $ 0                 $151,000

During the Year :

Profit for the year                        -                    $28,600             $28,600

Dividends paid                            -                    ($13,000)           ($13,000)

Total                                       $151,000             $15,600           $166,600

Cascade Company

Balance Sheet as at year 1

ASSETS

Cash ($151,000 + $90,600 - $62,000 - $13,000)                  $166,600

Total Assets                                                                              $166,600

EQUITY AND LIABILITIES

Equity                                                                                        $166,600

Total Equity and Liabilities                                                     $166,600

Cascade Company

Statement of Cashflow for the year ended year 1

Cash flow from Operating Activities

Cash receipts from customers                                               $90,600

Cash payments to suppliers and employees                      ($62,000)

Net Cash from Operating Activities                                       $28,600

Cash flow from Investing Activities

No Investment activities

Net Cash from Investing Activities                                                 $0

Cash flow from financing Activities

Capital Invested                                                                    $151,000

Dividends Distributions                                                        ($13,000)

Net Cash from Investing Activities                                     $138,000

Movement during the year                                                $166,600

Beginning Cash and Cash Equivalents                                      $0

Ending Cash and Cash Equivalents                                 $166,600

Explanation:

The income statement, statement of changes in equity, balance sheet, and statement of cash flows for Cascade Company have been prepared above.

Note : Make sure to take note of the format and appropriate heading of each statement.

answer; the above statement/question is ( true);