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 $$108,000$ from the bank to start the business.

Provided $$72,000$ of services to clients and collected $$60,000$ cash.

Paid salary expense of $$38,400.$

Data for Sports Clothing

Borrowed $$108,000$ from the bank to start the business.

Purchased $$72,000$ inventory for cash.

Inventory costing $$31,200$ was sold for $$60,000$ cash.

Paid $$9,600$ cash for operating expenses.

Required:

a$.$ Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.