The following information is available for two different types of businesses for the 2014 accounting period. Lewis CPAs is a service business that provides accounting services to small businesses. Casual Clothing is a merchandising business that sells sports clothing to college students.

Data for Lewis CPAs

1.	Borrowed $34,000 from the bank to start the business.
2.	Provided $44,000 of services to clients and collected $44,000 cash.
3.	Paid salary expense of $28,200.

Data for Casual Clothing

1.

Borrowed $34,000 from the bank to start the business.

2.

Purchased $33,000 inventory for cash.

3.

Inventory costing $27,700 was sold for $50,000 cash.

.

4. Paid $4,000 cash for operating expenses.

Required

a-1.

Prepare an income statement for each of the companies.

a-2.

Prepare a balance sheet for each of the companies.

a-3.

Prepare a statement of cash flows for each of the companies. (Amounts to be deducted should be indicated with a minus sign.)

a-4.

Prepare an income statement for each of the companies.

a-5.

Prepare a balance sheet for each of the companies.

a-6.

	Prepare a statement of cash flows for each of the companies. (Amounts to be deducted should be indicated with a minus sign.)
	b. Which of the two businesses would have product costs?