The following information is available for two different types of businesses for the 2014 accounting period. Lewis CPAs is a service business that provides accounting services to small businesses. Casual Clothing is a merchandising business that sells sports clothing to college students.

Data for Lewis CPAs

1.	Borrowed $80,000 from the bank to start the business.
2.	Provided $60,000 of services to clients and collected $60,000 cash.
3.	Paid salary expense of $40,000.

Data for Casual Clothing

1.	Borrowed $80,000 from the bank to start the business.
2.	Purchased $50,000 inventory for cash.
3.	Inventory costing $32,000 was sold for $60,000 cash.
4.	Paid $7,200 cash for operating expenses.

Required

a-1.	Prepare an income statement for each of the companies.

a-2.	Prepare a balance sheet for each of the companies.

a-3.	Prepare a statement of cash flows for each of the companies. (Amounts to be deducted should be indicated with a minus sign.)

a-4.	Prepare an income statement for each of the companies.

a-5.	Prepare a balance sheet for each of the companies.

a-6.	Prepare a statement of cash flows for each of the companies. (Amounts to be deducted should be indicated with a minus sign.)

b.

Which of the two businesses would have product costs?

	Lewis CPAs
	Casual Clothing