90.2K

Verified Solution

Link Copied!

Faith Busby and Jeremy Beatty started the B\&B partnership on January 1, Year 1. The business acquired $68,200 cash from Busby and $151,800 from Beatty. During Year 1 , the partnership earned $63,200 in cash revenues and paid $41,650 for cash expenses. Busby withdrew $2,500 cash from the business, and Beatty withdrew $3,700cash. The net income was allocated to the capital accounts of the two partners in proportion to the amounts of their original investments in the business. Required Prepare an income statement, capital statement, balance sheet, and statement of cash flows for B\&B's Year 1 fiscal year. Note: For Statement of Cash Flows only, indicate amounts to be deducted and cash outflows with a minus sign. Round your profit sharing ratio to 2 decimal places and final answers to the nearest dollar amount. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ B\&B PARTNERSHIP } \\ \hline \multicolumn{1}{|c|}{ Statement of Cash Flows } \\ \hline \multicolumn{1}{|c|}{ For the Year Ended December 31, Year 1 } & \\ \hline Cash flows from operating activities: & & \\ \hline Receipts from revenues & & \\ \hline Paid for expenses & & \\ \hline Net cash flow from operating activities & & \\ \hline Cash flows from investing activities & & \\ \hline & & \\ \hline & & \\ \hline Net cash flow from investing activities & & \\ \hline Cash flows from financing activities & & \\ \hline Proceeds from partners & & \\ \hline & & \\ \hline Net cash flow from financing activities & & \\ \hline Net change in cash & & \\ \hline Plus: Beginning cash balance & & \\ \hline Ending cash balance & & \\ \hline \end{tabular}

Answer & Explanation Solved by verified expert

See Answer