Exercise $8-3$A $($Static$)$ Effect of accounting events on the financial statements of a partnership LO $8-1$

Faith Busby and Jeremy Beatty started the B&B partnership on January $1,$ Year $1.$ The business acquired $$44,000$ cash from Busby and $$66,000$ from Beatty. During Year $1,$ the partnership earned $$42,000$ in cash revenues and paid $$18,400$ for cash expenses. Busby withdrew $$2,000$ cash from the business, and Beatty withdrew $$2,500$ cash. 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 $($statement of changes in equity$),$ balance sheet, and statement of cash flows for B&B$\text{'}$s Year $1$ fiscal year.

Answer is not complete.

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[\backslash$table$[[$Income$],[$Statement$]],\backslash$table$[[$Capital$],[$Statement$]],$Balance Sheet,$\backslash$table$[[$Statement of$],[$Cash Flows$]]]]$

Prepare a statement of cash flows.

Note: Cash outflows should be indicated with a minus sign.

$\backslash$table$[[$B&B PARTNERSHIP$],[$Statement of Cash Flows$],[$For the Year Ended December $31,$ Year $1],[$Cash flows from operating activities:$],[$Receipts from revenues,$$42,000vv,],[$Paid for expenses,$(18,400),],[$Net cash flow from operating activities,,$$23,600$