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 $98,100 from the bank to start the business.

Provided $65,400 of services to clients and collected $54,500 cash.

Paid salary expense of $34,880.

Data for Sports Clothing

Borrowed $98,100 from the bank to start the business.

Purchased $65,400 inventory for cash.

Inventory costing $28,340 was sold for $54,500 cash.

Paid $8,720 cash for operating expenses.

Prepare an income statement for Hopkins CPAs. HOPKINS CPAs Balance Sheet As of December 31, Year 1 \begin{tabular}{|l|l|l|} \hline Assets & & \\ \hline Cash & & \\ \hline Accounts receivable & & \\ \hline Total assets & & \\ \hline Liabilities & & \\ \hline Notes payable & & \\ \hline & & \\ \hline Total liabilities & & \\ \hline Stockholders' equity & & \\ \hline \multicolumn{1}{|c|}{ Retained earnings } & \\ \hline Total stockholders' equity & & \\ \hline Total liabilities and stockholders' equity & & \\ \hline \hline \end{tabular} HOPKINS CPAs Statement of Cash Flows For the Year Ended December 31, Year 1 SPORTS CLOTHING Income Statement For the Year Ended December 31, Year 1 SPORTS CLOTHING Balance Sheet As of December 31, Year 1 Assets Total assets Liabilities Total liabilities $ Stockholders' Equity Total stockholders' equity Total liabilities and stockholders' equity $ SPORTS CLOTHING Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Ending cash balance $ 0