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 $97,200 from the bank to start the business. 2. Provided $64,800 of services to clients and collected $54,000 cash. 3. Paid salary expense of $34,560. Data for Sports Clothing 1. Borrowed $97,200 from the bank to start the business. 2. Purchased $64,800 inventory for cash. 3. Inventory costing $28,080 was sold for $54,000 cash. 4. Paid $8,640 cash for operating expenses. Required: a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies.

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 $97,200 from the bank to start the business. 2. Provided $64,800 of services to clients and collected $54,000 cash. 3. Paid salary expense of $34,560. Data for Sports Clothing 1. Borrowed $97,200 from the bank to start the business. 2. Purchased $64,800 inventory for cash. 3. Inventory costing $28,080 was sold for $54,000 cash. 4. Paid $8,640 cash for operating expenses. Required: a. Prepare an income statement, balance sheet, and statement of cash flows for each of the companies