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 Sports Clothing

1. Borrowed $106,200 from the bank to start the business.

2. Purchased $70,800 inventory for cash.

3. Inventory costing $30,680 was sold for $59,000 cash.

4. Paid $9,440 cash for operating expenses.

SPORTS CLOTHING Income Statement For the Year Ended December 31, Year 1 Net sales revenue 0 Expenses 0 SPORTS CLOTHING Balance Sheet As of December 31, Year 1 Assets Cash Merchandise inventory Total assets $ 0 Liabilities Notes payable $ 0 Total liabilities Stockholders' Equity Retained earnings 0 Total stockholders' equity Total liabilities and stockholders' equity $ 0 SPORTS CLOTHING Statement of Cash Flows For the Year Ended December 31, Year 1 Cash flows from operating activities: $ 0 Net cash flow from operating activities Cash flows from investing activities Cash flows from financing activities: Net cash flow from financing activities 0 0 Ending cash balance $ 0