Answer:
Cascade Company
<u>Income statement for the year ended year 1</u>
Sales Revenue $90,600
Less Expenses $62,000
Net Income $28,600
Cascade Company
<u>Statement of changes in equity for the year ended year 1</u>
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
<u>Balance Sheet as at year 1</u>
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
<u>Statement of Cashflow for the year ended year 1</u>
<em>Cash flow from Operating Activities</em>
Cash receipts from customers $90,600
Cash payments to suppliers and employees ($62,000)
Net Cash from Operating Activities $28,600
<em>Cash flow from Investing Activities</em>
No Investment activities
Net Cash from Investing Activities $0
<em>Cash flow from financing Activities</em>
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.
