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Exercise 4 - 1 A ( Algo ) Comparing a merchandising company with a service company LO 4 - 1 The following information is available

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Exercise 4-1A (Algo) Comparing a merchandising company with a service company LO 4-1
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
Borrowed $99,900 from the bank to start the business.
Provided $66,600 of services to clients and collected $55,500 cash.
Paid salary expense of $35,520.
Data for Sports Clothing
Borrowed $99,900 from the bank to start the business.
Purchased $66,600 inventory for cash.
Inventory costing $28,860 was sold for $55,500 cash.
Paid $8,880 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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