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 $$90,000$ from the bank to start the business.

Provided $$60,000$ of services to clients and collected $$50,000$ cash.

Paid salary expense of $$32,000.$

Data for Sports Clothing

Borrowed $$90,000$ from the bank to start the business.

Purchased $$60,000$ inventory for cash.

Inventory costing $$26,000$ was sold for $$50,000$ cash.

Paid $$8,000$ cash for operating expenses.

Required:

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

Complete this question by entering your answers in the tabs below.

Prepare an income statement for Hopkins CPAs.Complete this question by entering your answers in the tabs below.

Prepare a statement of cash flows for Hopkins CPAs.

Note: Cash outflows should be indicated with a minus sign.