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2.5 points The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service

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2.5 points The following information is available for two different types of businesses for the Year 1 accounting year. Hopkins CPAs is a service business that provides accounting services to small businesses. Sports Clothing is a merchandising business that sells sports clothing to college students. Data for Hopkins CPAs 1. Borrowed $45,000 from the bank to start the business. 2. Provided $35,000 of services to clients and collected $35,000 cash. 3. Paid salary expense of $22,400. Data for Sports Clothing 1. Borrowed $45,000 from the bank to start the business. 2. Purchased $24,000 inventory for cash. 3. Inventory costing $20,200 was sold for $36,000 cash. 4. Paid $2,900 cash for operating expenses. Required a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.

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