The following information is available for two different types of businesses for the 2016 accounting period. Nimble CPAs is a service business that provides accounting services to small businesses. Barge is a merchandising business that sells sports clothing to college students.

Data for Nimble CPAs $325,000 from the bank to start the business. 1. Borrowed 2. Provided $227,500 of services to customers and collected $227,500 cash 3. Paid salary expense of $162,500 Data for Barge Borrowed $325,000 from the bank to start the business. Purchased $208,000 inventory for cash. Inventory costing $119,600 was sold for $195,000 cash. 3. Paid $27,300 cash for operating expenses. REQUIRED a. Prepare an income statement, a balance sheet, and a statement of cash flows for each of the companies. b. Which of the two businesses would have product costs? Why? c. Why does Nimble CPAs not compute gross margin on its income statement? d. Compare the assets of both companies. What assets do they have in common? What assets are different? Why